Authorizing a Bank Account for ACH Payments
Before ACH transactions can be processed, the customer must complete the Bank Authorization. This is a mandatory standard for ACH payments. The workflow for authorization is as follows:
- Bank account details are entered.
- The customer can add an ACH payment method from their customer portal account, or;
- The business may add an ACH payment method under the customer record.
- The payment processor will make a microdeposit into the customer’s bank account.
- This is usually a $0.01 deposit.
- The deposit will have a transaction number or statement descriptor that includes a 6 digit code starting with “SM”.
(Example: SMABCD-UNIT TRAC – ACCTVERIFY-ST-AB1C23DEF4567)
*Note - this may look a little different depending on the bank.
- The customer will receive the following email with directions for authorization.
- The customer will need to click the link included in the email. This takes the customer to a page to enter the 6 digit code from the deposit in their bank account as noted above.
Below is the page the customer sees when they click the “Click here to validate your payment information” link.
Once the account has been authorized, ACH payments can be processed.