Learn about ACH authorization
In accordance with the Nacha Rules, you must obtain appropriate authorization from the owner of the bank account before initiating an ACH payment. As the Originator of the transaction, it is your sole responsibility to (1) verify the identity of your customer; (2) determine their eligibility to purchase your products or services; and (3) obtain appropriate authorization to initiate ACH debits from or ACH credits to their account.
We recommend that you become familiar with the Nacha Rules relating to authorization by visiting nacha.org. As part of the authorization process, we suggest collecting and storing (digitally or in paper form) the following information for 2 years, at a minimum (however, refer to the relevant Nacha Rules to ensure you are complying with your obligations):
Customer consent – Authorization page that clearly states you are obtaining the customer’s consent to debit their bank account for a particular transaction or for recurring transactions
Transaction-specific information – Date and time of transaction, account information of debited account, item or service purchased, frequency of payment (if recurring), and IP address
Customer account information – Name on the account, shipping details (if applicable), and any other ways to verify the customer’s identity
Transaction receipt – Provide the customer a receipt of the transaction by sending them an e-mail receipt of the transaction and also giving them the ability to print the authorization to retain a copy
Process to revoke authorization – Include a telephone number and e-mail address where your customer can contact you to do so, which should be on the authorization page and in the receipt
Coming soon: Plaid will provide out-of-the-box authorization language and a payments UX that is designed in accordance with the applicable authorization rules. The UX will integrate seamlessly with Plaid Link, so you won't need to stand up any additional pages in your website or app.