Authorization Requirements for Consumer (PPD) Transaction

Debit Transaction Authorization

• Must be in writing and signed or similarly authenticated
• Needs to be easily identified as an authorization and state the terms clearly (amount and timing of debits)
• Must state how the Consumer can revoke the authorization
• A copy of the authorization must be provided to the Consumer
• You must be able to make a copy of the authorization available to Stockman Bank upon request within seven (7) banking days
• Authorizations must be securely retained and kept for two years after the last ACH debit to the Consumer

Credit Transaction Authorization

• Authorization is not required to be in writing, but you may choose to get an authorization in writing
• Please Note: Stockman Bank recommends that credit authorizations be obtained
• Authorizations must be securely retained

Example of ACH Credit and Debit Authorization

Authorization Requirement for Commercial (CCD & CTX) Transactions

• A written agreement must be in place between the originating business and the receiving business
• Agreements do not have a specific format requirement, but must obtain the Receiving Companies agreement to be bound by the Nacha Operating Rules
• Trading Partner agreements should contain authorization requirements and procedures as agreed upon by the parties
• Agreements must be securely retained