The National Retail Federation calculated ecommerce sales “increase 4.1 percent over 2018 to 2019, as much as $730.2 billion.” With that in mind, merchants should revisit our resources page describing the rules associated with What is ACH Processing? Educate yourself on the rules that National Automated Clearing House Association (NACHA) set for authorization of WEB Entries (Internet Initiated/Mobile Entries).
In this post on iCheckGateway.com‘s series on proper ACH authorization methods, let’s discuss how to obtain a customer’s authorization to debit his or her bank account for goods or services. Whether it’s a one-time transaction or a recurring payment arrangement, all authorizations must have clear and understandable language. Customers can easily see the text on any visual display, such as a computer monitor, phone, tablet, notebook, etc.
The way a merchant presents that online authorization language needs to contain the following:
I authorize Merchant Name to debit the bank account indicated in this web form, for the noted amount on today’s date. I understand that because this is an electronic transaction, these funds may be withdrawn from my account as soon as the above noted transaction date. I will not dispute Merchant Name debiting my checking/savings account, so long as the transaction corresponds to the terms indicated in this web form.
[Click to Authorize Payment]
I authorize Merchant Name to debit the bank account indicated in this web form, for the noted amount starting on today’s date and for the schedule selected by me. I understand that because this is an electronic transaction, these funds may be withdrawn from my account as soon as the above noted transaction date. I will not dispute Merchant Name debiting my checking/savings account, so long as the transaction corresponds to the terms indicated in this web form.
[Click to Authorize Recurring Payment]
In addition, iCheckGateway.com recommends that the payment authorization language appear on the same page as the bank account information. Consequently, this makes it clear to the consumer exactly which account he or she gives permission to be debited for their ecommerce sales transaction. We require merchants to keep all authorization agreements for two years in case a customer’s bank requests proof of authorization for a transaction. Proof of authorization can include the authorization permissions above. This documentation provides transaction details, including customer info.
Other details useful to have in the transaction details:
These details help give evidence of the customer’s identity and their agreement to the authorization. Add a clickable button with a statement that the customer agrees to the payment withdrawal once “clicked”. These two action items will satisfy NACHA’s regulations, and it keeps a merchant’s operations running smoothly.
iCheckGateway.com protects Merchants with other services, keeping them under a reduced PCI Scope. Ask about other Check Verification, Tokenization, Customer/IP black listing, and End to End Encryption. Let us help you to accept payment on your ecommerce sales payment portal securely and efficiently.
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