If you’re trying to set up ACH billing for your business, there are certain rules and regulations you need to follow. For example, a customer has to give you the green light to initiate an ACH transfer. To do this, you’ll need to create an ACH form to receive payment from your customers. Fortunately, this only has to be done once before you can set up a one-time payment or recurring billing cycle. What should this document look like? What should it include? We cover the best practices for your ACH form template and also share some of our premade ACH templates, too!

Why Use ACH Payments?

Today, there are so many convenient ways to make and receive payments. While accepting credit and debit cards is a must, ACH transactions are another game changer.

ACH is a fast, secure, and cost-effective way to transfer funds between bank accounts. For small businesses that provide repeat services, it’s a great way to establish recurring payments. Even better, it comes with less fees than credit card transactions.

Customers love it too. The volume of ACH payments is on the rise, proving that customers want more flexible payment options.

Why Do I Need An ACH Form Template To Receive Payments?

Obtaining proper authorization for ACH transactions is one of the most important steps you can take to protect yourself. Disputes, return fees, and reversed transactions can arise if you haven’t secured a proper ACH payment form beforehand.

Think of this as being similar to a customer handing over their physical credit or debit card. This written ACH agreement states that the person is aware you will be taking the funds out of their bank account. In the event of a customer or client questioning the legitimacy of a charge, you will need to turn over this proof of authorization in order to win any dispute.

Another benefit of having this ACH request form template is for your bookkeeping purposes, making it easy for every customer to have a clear paper trail. You will have a signed form for your files in case any questions come up in the future. This will serve as a roadmap to clear up any questions regarding one-time versus recurring payments, and much more.

Further, you can help maintain a safe and secure payment process by using an ACH authorization form template. Whether you choose to maintain paper records or digital scans, you will have the information you’ll gather from your customers in one spot.

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How To Create An ACH Authorization Form Template

As you begin to craft your ACH form to receive payments, remember to keep it simple. You don’t need excessive legal jargon or unnecessary details. All of the information you need should fit neatly on a single page.

At the top of the page, consider a brief explanation of what a direct payment via ACH is. This only needs to be one to two sentences. From there, here are three important sections to include.

Establish the customer’s name and banking information

First and foremost, your customer must state their name and acknowledge the agreement. For example, “I authorize _________ (your company) to electronically debit the following account.”

Leave two boxes, one for a savings account and one for a checking account. Ask them to check the box for which type of account they will be listing. Follow this with three lines, asking them to supply the name of their banking institution, the account number, and the routing number they’ll use for the ACH payments.

Disclose the amount and frequency of payments

Next, establish the amount of money that will be charged and how often.

If it is a one-time payment, leave a box to check to indicate this. For recurring billing, leave a line to enter in the frequency and/or monthly date that the money will be debited from the account.

For recurring payments that may differ in price every month, you may choose to specify a range of acceptable dollar amounts. For services with a wide range of costs, leaving “Varies” is also acceptable.

Require a signature

Last, but certainly not least, your customer should sign on the dotted line. Require them to acknowledge that all of the information stated in the form is true by printing their name, signing their name, and providing the date.

You may also wish to include language about the necessary steps for reversing the authorization and stopping payments (especially in the case of recurring billing).

Find ACH Authorization Form Samples 

Not looking to start from scratch? PaySimple has you covered. We offer three templates for essential payment authorization forms, including an ACH form template. These will help you manage and protect your payments, no matter the type of business you own.

When it comes to eCheck or ACH transactions, you can have peace of mind knowing you’re following the correct protocols when you use our ACH form template. Plus, you can also access a recurring payment authorization form if you anticipate scheduled payments. This ACH form template allows you to prove that you were given permission to regularly charge an agreed upon amount from your customer’s bank account.

Use PaySimple For Your ACH Processing

Are ACH payments right for your business? The answer is most likely yes!

When you’re ready to expand your payment options and begin accepting ACH payments, PaySimple can help. With our software, you’ll have the ability to accept ACH payments online, in-person, over the phone, or on a mobile device. Plus, you can schedule recurring payments for your repeat customers.

With PaySimple, ACH, credit cards, and other forms of mobile and in-person payments are all collected into one integrated solution. You’ll always have access to exactly how much you’ve been paid and when.

Perhaps the best news is that you can save more money when you partner with PaySimple. With ACH processing rates as low as 60 cents and 0.2% per transaction, it’s no wonder thousands of businesses choose PaySimple for all of their payment needs.

To learn more about our payment solutions, start your free trial with PaySimple.

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