Which document is necessary for the authorization of an ACH debit?

Which document is necessary for the authorization of an ACH debit?

• A. A Written Statement of Unauthorized Debit
• B. A direct bank statement
• C. An electronic signature consent
• D. A verbal agreement

Answer: (A)

The document required for the authorization of an ACH debit is indeed a clear consent from the account holder, and this is most accurately represented by an electronic signature consent. This consent signifies that the account holder has granted permission for the debit transaction to be initiated from their account. Authorization for an ACH debit must be obtained in a form that complies with NACHA (National Automated Clearing House Association) rules, which govern ACH transactions. An electronic signature consent generally fulfills this requirement as it is considered a legally binding electronic signature, validating that the account holder has agreed to the terms of the transaction. Written statements of unauthorized debits, on the other hand, are forms used to dispute transactions, not to authorize them. A direct bank statement does not provide explicit authorization for debits, and a verbal agreement lacks the formal requirements needed for ACH transactions. Thus, having a proper electronic consent ensures compliance and protects against future disputes regarding the transaction.

The document required for the authorization of an ACH debit is indeed a clear consent from the account holder, and this is most accurately represented by an electronic signature consent. This consent signifies that the account holder has granted permission for the debit transaction to be initiated from their account.

Authorization for an ACH debit must be obtained in a form that complies with NACHA (National Automated Clearing House Association) rules, which govern ACH transactions. An electronic signature consent generally fulfills this requirement as it is considered a legally binding electronic signature, validating that the account holder has agreed to the terms of the transaction.

Written statements of unauthorized debits, on the other hand, are forms used to dispute transactions, not to authorize them. A direct bank statement does not provide explicit authorization for debits, and a verbal agreement lacks the formal requirements needed for ACH transactions. Thus, having a proper electronic consent ensures compliance and protects against future disputes regarding the transaction.