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eChecks with signed authorization

If your customer is not on the phone with you at the time you wish to process an eCheck, or if you would like to process eChecks on a recurring basis without having to be on the phone with your customer each time, you must obtain signed authorization to do so.

How to get signed authorization

  1. Use one of the authorization templates below for the type of eCheck transaction you will be running for this customer. (You can copy it into your e-mail message or word processing document.)

    One-time check

    Use this template when a customer pays you for a one-time service or product.

    I authorize [Merchant Name] to initiate either an electronic debit or to create and process a demand draft against my bank account on or after [Month/Day/Year] for the amount of [Amount]. I acknowledge that the origination of ACH transactions to my account must comply with the provisioning of United States law. My account information is as follows:

    Bank Information

    Bank ABA Number [Customer's Routing Number]
    Bank Account Number [Customer's Account Number]
    Bank Account Type: [Checking/Savings/Business Checking]
    [Customer Signature]
    [Customer Printed Name]
    [Date Signed]

    Recurring eCheck transactions

    Use this template when you want to bill a customer for a recurring service or product, such as a lawn service or subscription.

    I authorize [Merchant Name] to initiate either an electronic debit or to create and process a demand draft against my bank account according to the terms outlined below.
    I acknowledge that the origination of ACH transactions to my account must comply with the provisioning of United States law.


    Terms of Billing

    ______ Starting on [Month/Day/Year] and on the [Day of Month] of each month following through [Month/Day/Year] for the amount of [Amount].
    _______ Starting on [Month/Day/Year] and on the [Day of Month] of each month following through [Month/Day/Year] for the amount owed to merchant as detailed in Invoice #/#'s [Invoice #/#'s].
    ______ Starting on [Month/Day/Year] and subsequently debited at any time for the amount owed to merchant as detailed in Invoice #/#'s [Invoice #/#'s].

    Bank Information

    Bank ABA Number [Customer's Routing Number]
    Bank Account Number [Customer's Account Number]
    Bank Account Type: [Checking/Savings/Business Checking]
    This payment authorization is to remain in full force and effect until I, [Customer Name], notify [Merchant Name] of its cancellation by sending written notice in such time and in such manner to allow both the [Merchant Name] and receiving financial institution a reasonable opportunity to act on it. [Customer Signature]
    [Customer Printed Name]
    [Date Signed]

    Mailed-in check

    Use this template when a customer mails you a paper check that you will use to create a keyed-in transaction.

    IMPORTANT: You must void any paper check that you use for a keyed-in transaction. If you wish, you can instruct your customer to mark the check "VOID" before sending it to you. This may increase their comfort level.

    I authorize [Merchant Name] to initiate either an electronic debit or to create and process a demand draft against my bank account whenever I send a check for payment of goods or services. The amount of the debit and bank account information will be used directly from the check. I acknowledge that the origination of ACH transactions to my account must comply with the provisioning of United States law.
    This payment authorization is to remain in full force and effect until I, [Customer Name], notify [Merchant Name] of its cancellation by sending written notice in such time and in such manner to allow both the [Merchant Name] and receiving financial institution a reasonable opportunity to act on it.

    Bank Information

    Bank ABA Number [Customer's Routing Number]
    Bank Account Number [Customer's Account Number]
    Bank Account Type: [Checking/Savings/Business Checking]
    [Customer Signature]
    [Customer Printed Name]
    [Date Signed]

  2. Fill in your business name for the Merchant Name field and any dates and amounts for debiting your customer's checking account.

  3. E-mail, mail or fax the completed form to your customer.

    The customer should fill in any necessary routing and account numbers, and then sign and return the authorization form to you before you can process their future eChecks without verbal authorization.

Process an eCheck with signed authorization

After you receive the signed authorization form back from your customer, you can process the eCheck transaction.

  1. To process an eCheck from a sales receipt, click the Sales Receipt icon on the Home page.

  2. To process an eCheck against an invoice, click the Receive Payments icon on the Home page.

    Choosing Customers > Check Processing Activities > Process eChecks opens the Receive Payments form.

  3. Complete the Receive Payment or Sales Receipt form, making sure to select eCheck as the payment method.

  4. Click the Save & Close button.

  5. In the Process eCheck Transaction window, the customer name and check amount are filled-in automatically.

  6. Enter your customer's Phone number.

  7. Enter the account number and routing number for the check, and choose the Account Type.

    Tip: Avoid returned checks! Double-check these entries to be certain you've typed your client's info correctly.

    After you enter a customer's account and routing number the first time, the next time you process an eCheck for this customer, the account and routing numbers will be filled in automatically.

  8. Select the checkbox to certify that you have received signed authorization from your customer.

    You cannot process an eCheck without turning on this checkbox. NACHA (National Automated Clearing House Association) rules require authorization from your client for each individual eCheck payment. If you fail to obtain authorization, your client can stop payment on the check.

  9. Click the Submit button.

    Note: NACHA (National Automated Clearing House Association) regulations specify that a merchant provide written or printed confirmation of the eCheck transaction.

  10. Save the payment.

  11. Deposit the payment now or after the payment has been funded to your bank.

See also

KB ID# H_SVC_QBMS_ECHECK_WRITTEN_AUTH
9/19/2014 4:49:35 AM
PPRDQSSWS401 9102 Pro 2013 2b7f1c