Authorization for ACH Client Debit Transactions

This article describes the addition of a payment dropdown for authorization for Automated Clearing House (ACH) debit. The article is divided into the following sections:

• Background
• Feature
• Reference

Background

An ACH is a computer-based electronic network for processing transactions between participating financial institutions, usually for domestic low-value payments. It may support both credit transfers and direct debits. The ACH network supports dozens of payment scenarios. With every entry, these categories appear as a unique three (3)-character Standard Entry Class (SEC) code. The SEC code determines which rules and regulations apply to a given payment, who can start them, and under which specific scenarios they can occur.

How to Use

To provide more detailed information in our reporting, Forth collects details regarding the method by which authorization was obtained from the consumer. 

1. To begin, log in to the CRM, and click on the Enrollments tab. 
2. Search for the appropriate contact and select Add Payment next to the Search Bar (see below).

An Add/Edit Payment dialog box will open, similar to the one below. NOTE: "Forth Custodial" is the default gateway.

When adding a new, or adjusting an existing ACH debit transaction, a dropdown menu appears, prompting agents to select the method the consumer authorized the transaction and/or a change to the transaction. 

3. Select the appropriate Gateway from the Gateway dropdown menu, 
4. Select ACH Client Debit from the Type dropdown (see below).

5. Next, go to the Auth Via dropdown menu and select a method for the authorization to be made

The three options are described in more detail below:

• PPD (Esign / Wet Signature) - Any signed document, including e-sign and wet signatures. A Prearranged Payment and Deposit (PPD) entry is a credit or debit to a consumer's bank account. The payment can be either single-use or recurring. In most business-to-consumer (B2C) contexts, PPD is by far the most commonly used SEC code.

• WEB (Text / Email) - Any authorization made on a device by email or text message. Internet-initiated/Mobile entries happen when debiting a consumer bank account using authorization via the internet or a "wireless" network. These debits can either be single-use or recurring, like PPD entries.

• TEL (Verbal Recording) - Any recording of a DRSP agent speaking with a consumer. Telephone-initiated entries happen when debiting a consumer bank account using authorization given over the phone. Operating guidelines state that the originator and receiver must have a pre-existing relationship, or if none exists, the receiver of the debit (i.e. the consumer) must have been the one to make the call.

6. Enter a date in MM/DD/YYYY format or use the Calendar tool by clicking the small calendar icon to add the date you wish this transaction to process.
7. In the Occurs field enter the number of times you wish this transaction to occur.
8. In the Amount field, enter the dollar amount to pay via ACH Client Debit.
9. Add any comments or additional information regarding this transaction via the Memo dropdown field (one example is "ACH Monthly Debit").
10. Finally, select Schedule Transaction from the Action dropdown menu (shown below) to schedule the transaction.

11. Click Save to complete this transaction. If you return to the Enrollments tab and review this contact's record, you will notice that an ACH Client Debit transaction is now listed on it (see example below).

Reference

For more information about ACH, please refer to the following article: https://www.moderntreasury.com/journal/the-top-5-ach-payment-types-and-an-ach-payment-glossary 

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