An Automated Clearing House (ACH) form is a legal agreement that authorizes a company (originator) to initiate an electronic funds transfer (EFT) from a payee’s bank to their bank over the ACH network. Customize an ACH agreement form template from Lawrina, fill out your details, download it, and use it according to your needs.
National Automated Clearing House Association (NACHA) is the body that governs the ACH network and requires that ACH forms be written and signed by the receiver. Further, financial institutions require that the originator obtains written instructions from the receiver before they can initiate ACH transactions. However, in some cases, oral instructions are acceptable subject to a financial institution's security measures which may include the use of a special password and a secure telephone line.
The rules also require that the originator maintain a copy of the signed form for at least 5 years after the last transaction and for the receiver for at least 2 years after the last transaction.
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An ACH authorization form sample is valid for the entire period your client depends on the agreement to make payments and two years after the date of the last payment.
ACH information form makes it easy and secure for your clients to honor recurring payments to your business without the hassle of going to a bank.
You can create your ACH form authorization template for your business, download a template from Lawrina to use as is or edit how you’d like, or hire an attorney to draft a form for you. Once your form is ready, call your bank and ask them to activate the direct deposit feature and show you how to upload an ACH file.