A credit or debit entry originated by an organization to a consumer’s account, based on standing or single-entry authorization from that consumer.
The Authorization must:
Be in writing;
Be readily identifiable as an ACH authorization;
Have clear and readily understandable terms;
Provide that the Receiver may revoke the authorization only by notifying the Company in the manner specified; and
Be signed or similarly authenticated.
The Authorization should contain the following information:
Account and routing numbers must be accurately stated.
Specify the account type.
The amount(s) and date(s) of the transaction(s).
The company must obtain authorizations for both credit and debit entries.
Authorization must be maintained for two years from the termination or revocation of the authorization and be made available within 10 banking days upon request.
Responsibilities of Originators
As an Originator, it's crucial to understand and fulfill your responsibilities when initiating PPD entries. To ensure compliance with the rules and regulations governing PPD transactions, follow these key steps:
Prompt Response to RDFI Requests: When the RDFI (Receiving Depository Financial Institution) submits a written request for a copy of the contract, provide a clear copy within ten Banking Days of receiving the request. This must be done if the request is received within two years of the Settlement Date of the PPD Entry.