Authorizing ACH Client Debit Transactions

This article describes how to record authorization methods for ACH Client Debit transactions within the FORTH system. It was developed for CRM users and account managers who schedule and authorize ACH client debit transactions.

The article is organized into the following sections:

• Overview
• Prerequisites
• How to Access
• How it Works
• Troubleshooting / FAQ
• Assistance

Overview

Automated Clearing House (ACH) regulations require organizations to document exact payment authorization methods. Selecting the correct Standard Entry Class (SEC) framework ensures your transactions meet financial network rules and regulatory standards. The Auth Via setting records whether a client authorized a debit through a written signature, digital communication, or recorded phone call.

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

Prerequisites

Standard user access to the FORTH CRM.

How to Access

1. Log in to the FORTH CRM.
2. Click on the Enrollments tab. 
3. Search for and select the appropriate contact.
4. Click Add Payment in the navigation bar (see below).
   

How it Works

1. In the Add/Edit Payment pop-up, select the required payment gateway from the Gateway dropdown menu. (Forth Custodial is the default gateway.)
2. Select ACH Client Debit from the Type dropdown menu.
   
3. (REQUIRED) Click the Auth Via dropdown menu and select the authorization method obtained from the consumer (see the three options below).
   

• PPD (Esign / Wet Signature): For written paper signatures or digital contract signatures. Prearranged Payment and Deposit (PPD) is the most commonly used SEC code.
• WEB (Text / Email): For consumer authorizations submitted through email, text message, or online form.
• TEL (Verbal Recording): For authorization captured on a recorded phone call.

4. Enter the processing date in MM/DD/YYYY format or click the small Calendar image to select a date.
5. Enter the transaction count in the Occurs field.
6. Enter the payment dollar amount in the Amount field.
7. Optional: Select or type details in the Memo dropdown field (for example, "ACH Monthly Debit").
8. (REQUIRED) Select Schedule Transaction from the Action dropdown menu.
   
9. Click Save.
10. Click Confirm to complete the schedule.

The scheduled ACH Client Debit transaction now appears in the contact record under the Enrollments tab.

Troubleshooting / FAQ

Why is the Auth Via field required for ACH debits?

ACH banking guidelines require recording the specific authorization channel to ensure compliance and defend against unauthorized payment disputes.

Which option applies if a client gives permission over email or text?

Select WEB (Text / Email) from the Auth Via dropdown menu for any authorization provided via email, text message, or web portal.

Can I select a gateway other than Forth Custodial?

Yes. Click the Gateway dropdown menu and choose the required gateway before saving the transaction. Forth Custodial is the default selection.

Assistance

For more information on adding payments, see our Help Center article titled, "Add a Payment".

For further assistance, reach out to support@setforth.com.