Confirm Authorization Clearly and Upfront

Confirm authorization before each ACH transaction. This creates clear expectations and gives your team a reliable reference if questions come up later.

Authorization can take different forms, including signed forms, online confirmations, recorded calls, or contract language. Consistency matters more than the format itself.

Focus on:

• The recipient understands what they are agreeing to, including amount, timing, and frequency.
• The authorization reflects the actual transaction being sent.
• Your team can access the record when needed.

Issues often come up when terms are assumed rather than confirmed, especially in long-standing relationships. Confirm authorization each time to prevent avoidable disputes and returns.

Verify Account Information Before Initiating a Transaction

Accurate account information is essential for ACH to work as expected. Before initiating a transaction, confirm that routing and account details are current, especially for first-time activity or recent changes.

Helpful ways to confirm include:

• Use a known, trusted contact method.
• Use validation tools or test transactions when appropriate.
• Review updates carefully before saving changes.

Account changes carry the highest risk of errors and fraud, including attempts such as business email compromise or impersonation scams. If you receive a request to change recipient account information, contact the recipient directly with their contact information that you have on file. Do not use a number included in the change request, as that number could also be compromised.

Example Phone Script:

Hi [Recipient Name], this is [Your Name] from [Company]. I am preparing a payment for your recent invoice. We received a request to update your banking details and I want to confirm this information is accurate before we process the transaction.

Can you confirm the routing and account details we have on file? 

Thank you for confirming. This helps prevent errors and protects us both from fraud.

Fraud Prevention Resources

Taking an extra step to confirm details is just one of many ways you can stay vigilant against scammers. Click here to learn more about common fraud attempts and what you can do to protect your accounts.

Strengthen Internal Controls

Most ACH risk comes from internal process gaps rather than a single external issue. A consistent approval structure reduces risk and makes transactions easier to manage as activity grows.

Define clearly:

• Who initiates transactions.
• Who reviews and approves them.
• Who releases them.

Separate responsibilities and add additional review for higher-value transactions. This creates a more controlled and predictable process. Issues are more likely when one person handles multiple steps.

Controls do not need to be complex. They need to be applied the same way each time.

Review Transaction Details Before Submission

Before submitting, confirm these key details:

• Amounts are correct.
• Effective dates are accurate.
• Recipient details match your records.

Small inconsistencies create repeated issues over time. A consistent review step prevents disruptions and reduces rework.

Create a Repeatable Process

Most ACH issues are not caused by a single failure. They come from inconsistent execution. Organizations that manage ACH effectively follow the same steps every time. They confirm authorization, verify account details, apply approvals, and review data before release.

This consistency is especially important when handling payroll, collections, and vendor transactions at scale.

Documenting your process will help your team:

• Work more consistently.
• Reduce reliance on individual knowledge.
• Maintain quality as responsibilities expand.

Consistency is what turns individual steps into a reliable system.

Next Step

Stage 2: Execute ACH Transactions Accurately and On Time