Business Online Banking Guide Platinum Bank

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ACH ACH Exceptions & Notifications

Authorizations • As the Originator, you are required to obtain the Receiver’s authorization before initiating any ACH credit or debit in accordance with applicable ACH rules. • Authorizations should be clear, readily understandable, and transparent. • Consumer debit authorizations are generally required to be in writing or similarly authenticated. They should specify whether the transaction is single or recurring, the amount, timing, Receiver’s name, account details, date, and revocation process. A copy must be provided to the consumer. • Consumer credit authorizations do not always need to be in writing and may be provided orally, depending on the circumstances. • Business-to-business (CCD/CTX) transactions require authorization through an agreement between the Originator and the Receiver. • You are required to retain authorization records in accordance with applicable ACH rules (generally a minimum of two years for certain consumer transactions). Returns • The RDFI (Receiving Depository Financial Institution) may return an ACH entry for valid reasons, such as insufficient funds, a closed account, or an unauthorized transaction. • Returns are subject to designated timeframes established by ACH rules (often by the opening of business on the second banking day following the settlement date of the original entry, sometimes referred to as the “24-hour return timeframe”). Certain SEC codes may follow different timelines. • As the Originator, you will generally receive return information from your ODFI, often accessible through your online banking system.

ACH: ACH Exceptions & Notifications