On occasion, ACH Processor may request that you provide a copy of a payment authorization (Proof of Authorization) in regard to a particular transaction or series of transactions. The reasons for this request can be:
Compliance Audit: ACH Processor, an Originating Bank, or a Regulatory Authority is conducting a random audit of ACH Processor’s clients in order to insure that proper methods of authorization are in use.
Receiving Bank Request: The Payer’s Bank, based on a claim from the Payer that the withdrawal was not authorized, has requested that proof of authorization is provided.
Consumer Complaint: A Payer has contacted ACH Processor and lodged a complaint in regard to a withdrawal.
Regardless for the reason a Proof of Authorization is requested, it is of the utmost importance that you provide evidence that the payment was duly authorized within 5 business days of such request. The section below will describe what would constitute a valid authorization based upon how the authorization was attained. Failure to provide a valid “roof of Authorization” can result in the temporary suspension or permanent termination of your ACH account.