ACH debit
An ACH transfer that pulls money out of an account with the account holder's prior authorization — the originator collects funds from the payer. Recurring subscriptions, utility bills, gym memberships, and automatic loan and rent payments are typically ACH debits.
Related forms
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What is an ACH authorization form?
An ACH authorization is your written permission letting an organization move money to or from your account electronically through the ACH network. A debit pulls money out; a credit pushes it in. Under Nacha rules, a consumer debit authorization must be written, signed, and clearly state the amount, timing, and how to revoke it.
How to stop an automatic ACH payment you authorized
To stop a recurring ACH payment you authorized, tell the company in writing that you revoke your permission to debit your account, and tell your bank too. Under Regulation E you can also order the bank to stop payment on the preauthorized transfer by notifying it at least three business days before the next debit.
How to dispute an unauthorized automatic payment
To dispute an unauthorized automatic payment that already posted, notify your bank within 60 days of the statement showing it. Under Regulation E the bank generally investigates within 10 business days and, if it needs longer, must give provisional credit and take up to 45 days. A confirmed error is corrected within one business day.