Vanco accepts authorizations for the following four approved eCheck (ACH) transaction types:
- PPD = business to consumer (most common)
- CCD = business to business
- TEL = telephone initiated
- WEB = web initiated
In order to process the above types of ACH transactions, authorization must be received for each customer. Vanco supports the following three forms of authorization allowed under ACH rules:
- Written
- Internet-initiated
- Telephone-initiated
The following are the procedures/guidelines, according to ACH rules, that must be adhered to when obtaining authorization for ACH transactions.
Vanco will perform random audits to monitor for compliance to these required rules.
Written Authorization (PPD or CCD)
A written authorization can be for either fixed or variable amounts as well as single or recurring transactions.
- Fixed transactions – The Authorization Form must include the amount of each transaction and the dates and/or frequency of the transactions.
- Variable transactions – You must give the Customer notification of the amount and the date on or after which the transaction will be debited. This notification must be given at least 10 calendar days prior to the settlement date.
All authorization forms must be signed and dated by the Customer and include:
- Customer’s name
- Customer’s address, city, state and zip
- Customer’s bank routing and account numbers
- A voided check or savings deposit ticket
- Language on how the Customer can terminate the authorization
Obtaining authorizations for eCheck (ACH) authorizations
Vanco recommends using one of our pre-designed authorization forms. If you choose to design your own form, Vanco must review and approve it in order to make certain that all required information is included.
A copy of the authorization must be retained for a minimum of two years following the termination or revocation of the authorization.
Document Destruction: ACH rules require that authorizations be destroyed after two years from the date of the last transaction. Vanco will issue a Document Destruction Report prompting the recipient to destroy the listed authorizations.
For the security and privacy of customers’ personal information, Vanco highly recommends storing signed authorization forms in a secure place (i.e. a locked cabinet).
Internet-initiated authorization (WEB)
If you would like to be able to accept Internet-initiated transactions, contact your sales representative for details. Authorizations received via the Internet can be for either one-time transactions or recurring transactions. The authorization must conform to the ACH rules and guidelines and include the
same requirements as a written authorization.
Authorizations must be signed or similarly authenticated. Two valid options for authentication are:
- Your safest option is using a User ID and password that you have assigned the customer. This User ID and password must be unique to each customer.
- Generate an email back to the customer confirming the information they entered. The authorization is considered authenticated once the customer has responded to the email.
In addition, the authorization must clearly state that it is for an ACH debit, state the terms of the authorization, and (for recurring payments) provide a method to terminate the authorization by notifying you. You should also prompt the customer to print and retain a copy of the authorization.
Telephone-Initiated Authorization (TEL)
If you would like to be able to accept telephone-initiated transactions, please contact your sales representative. When conducting TELtransactions, you must adhere to the following guidelines:
- TEL-transactions are conducted for single debit entries only.
- The customer must initiate the telephone inquiry or have a pre-existing relationship with your organization.
- Additional debits to an account require written authorization from the customer and must be initiated by the customer.
- Transactions must be coded as a “TEL.”
- You must either 1). record the oral authorization or 2). provide the customer with written notice confirming the oral authorization prior to the settlement date.
Original or duplicate recordings or written confirmation of customer’s authorization must be retained for two years from the date of authorization and must be made available to upon request to review for compliance.
Document destruction: ACH rules require that authorizations be destroyed after two years from the date of the last transaction. Vanco will issue a Document Destruction report prompting the recipient to destroy the listed authorizations.
Telephone-initiated authorizations must include the following information:
- Customer’s name
- Customer’s address, city, state and zip
- Date on which the account will be debited
- The amount of the single entry debit
- Customer’s bank account and routing number
- Date of customer’s verbal authorization
- A business telephone number for the customer to call during normal
business hours. - A statement that the information given by the customer will be used to originate a single ACH debit entry to the customer’s account along with a clear expression of the terms of the authorization.