AAP Authorization Requirements

Question 1

For PPD debit entries, the written authorization obtained by an Originator must be:

Accepted Answer

Clear, readily understandable, and contain the payment amount, schedule, and Receiver's account information

Answer

Any signed document from the Receiver, regardless of content

Answer

Verbal authorization recorded and retained on file

Answer

Authorization provided exclusively through an online portal

Question 2

A consumer's written authorization for a recurring ACH debit must include which essential element?

Accepted Answer

The Receiver's signature or electronic equivalent authorizing the debit

Answer

The Originator's bank routing number on the authorization form

Answer

The ACH Operator's approval code for the transaction

Answer

NACHA certification number for the Originator

Question 3

For TEL entries, an Originator may initiate a one-time ACH debit only if:

Accepted Answer

There is an existing relationship with the consumer OR the consumer initiated the call

Answer

The call was recorded regardless of who initiated it

Answer

The consumer has a prior written agreement on file

Answer

Any inbound or outbound call is made with the consumer

Question 4

How long must an Originator retain authorization records for ACH entries?

Accepted Answer

2 years from the termination or revocation of the authorization

Answer

7 years from the date the authorization was originally signed

Answer

Until the Receiver's account is permanently closed

Answer

5 years from the date of the last transaction under the authorization

Question 5

For WEB debit entries, what additional security requirement is imposed on Originators?

Accepted Answer

An annual audit to validate the security of transmission and storage of Receiver banking information

Answer

Monthly reporting of WEB volume to NACHA

Answer

Mandatory two-factor authentication for all WEB transactions

Answer

Real-time fraud monitoring certification by a third party

Question 6

A consumer may revoke ACH debit authorization by:

Accepted Answer

Notifying the Originator in the manner specified in the authorization agreement

Answer

Calling their RDFI only—the RDFI then notifies the Originator

Answer

Filing a formal complaint with NACHA's consumer protection division

Answer

Disputing the charge through their credit card issuer