Native American Bank Business eBanking User Guide

44

ACH Authorizations, Returns, Notifications of Change and Reversals Authorizations • As the Originator, you must have the Receiver’s authorization before initiating any ACH credit or debit to their account. • Authorizations must be clear, easily understood, and transparent. • Consumer debit authorizations must generally 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 given orally. • Business-to-business (CCD/CTX) transactions require authorization through an agreement between the Originator and the Receiver. • You must retain authorization records for a defined period—typically two years after the authorization is terminated or revoked for 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 must be sent by the RDFI within designated time frames— typically by the start of business on the second banking day following the settlement date of the original entry (known as the “24-hour rule”). Certain SEC codes, such as RCK (Re-presented Check Entries), may follow different timelines. • As the Originator, you will receive return information from your ODFI (Originating Depository Financial Institution), often accessible through your online banking system.

ACH: Authorizations, Returns, Notifications of Change and Reversals