ACH Authorization

Please follow the mandatory steps below when taking ACH payments with Circle APIs.

Collect ACH authorization from your end users

Circle does not allow you to collect an ACH payment using our APIs unless it has been clearly authorized by the bank account holder. You are solely responsible for obtaining such authorization in order to collect payments via ACH debits. This is to comply with NACHA Rules.

Obtaining a valid authorization for your ACH payments is a key step in terms of maintaining compliance with the ACH network rules and preventing reversed payments and return fees. In order to obtain a valid authorization, you should have an authorization screen or page that clearly states you are requesting consent to debit your end user’s bank account, and whether that’s for a single payment or also for future recurring payments.

We also recommend you have the following for every transaction:

  • Description of good or service purchased.
  • Frequency of purchase (when the transaction involves a recurring payment).
  • Any information on the identity of the end user.
  • Login and authentication status.
  • Transaction receipt.
  • Instructions on how to revoke the debit authorization (whether it’s an email address or a button or your product / service).

We recommend collecting and storing the authorization and additional information above in digital form for a period of 2 years.

Suggested authorization language

Below we have provided two examples of acceptable language for requesting authorization from your end users. Alongside this authorization language, you should have clearly displayed details of the transaction, including the account and financial institution details, amount, purpose, and date.

Single entry direct payment via ACH

I (we), [CONSUMER NAME] authorize [YOUR COMPANY NAME](“COMPANY”) to electronically debit my (our) Depository account for a one-time electronic funds transfer (EFT) payment for the amount and on the date identified. I (we) also authorize [COMPANY] to debit or credit my (our) account to correct any errors or process any refunds, if necessary.

Recurring direct payment via ACH

I (we), [CONSUMER NAME] authorize [YOUR COMPANY NAME] (“COMPANY”) to collect my (our) [insert purpose of payment, i.e., Monthly Service Charge] by electronically debiting my (our) Depository account for recurring [insert timeframe, e.g., monthly] electronic funds transfer (EFT) payments for the amounts and on the dates identified. I (we) also authorize [COMPANY] to debit or credit my (our) account to correct any errors or process any refunds, if necessary.

I (we) understand that this consent and authorization shall remain in full force and effect until [COMPANY] has received notification from me (us) of termination of my (our) authorization. I (we) understand that I (we) must notify [COMPANY] [insert how to notify the Originator, e.g., by email at [email protected], etc.] at least [__] days before the next scheduled payment.