ACH Direct Debit
The Automated Clearing House (ACH) network is an electronic funds transfer system that enables customers in the United States (US) to move money between bank accounts in a fast, secure and paperless way.
Information
To enable ACH payments on your account, contact your account manager or request support.
Model | Collecting |
---|---|
Payment flow | Direct Debit |
Payment method type | Direct |
Auto-capture payment | |
Authorization | |
Capture | |
Refund | |
Partial refund | |
Multiple refunds | |
Return | |
Recurring payment |
Before processing ACH payments, you must collect customer consent to debit their account.
To comply with National Automated Clearing House Association (NACHA) rules, you must obtain consent from the bank account owner before you can collect ACH debit payments from their account.
The consent you present to the customer must:
- Clearly set out the terms of the authorization.
- Explicitly state that you are obtaining consent to debit the customer's bank account for a specific transaction, or set of recurring transactions.
- Explain how the customer can revoke their direct debit authorization.
You must also:
- Include NACHA-mandated language in the terms and conditions section.
- Enable your customer to view and print a receipt after the payment has been successfully submitted.
If you are managing recurring payments, the receipt must have full details of the schedule (payment amount, frequency, start date, end date, and number of payments), along with a confirmation number and date for any transaction processed as part of the schedule. - Email a receipt to your customer, with a copy to yourself.
- Notify your customer in advance of any change to the scheduled payment amount, payment range or payment date.