As an ACH Originator with Lincoln Savings Bank, you are required to have policies and procedures in place to help prevent fraud. By reviewing the guidelines below and signing the form you acknowledge that your business has policies and procedures in place and review them periodically to help prevent fraud.
4. Use secure transmission methods for all account information
4. Implement dual control or multi-factor authentication whenever possible
When creating a new recipient:
1. Obtain proper documentation, such as:- A copy of a check
- Supporting documentation from the recipient’s financial institution
- Do not rely solely on email communications
- Confirm instructions by phone or in person
- Use only the contact information already on file
4. Use secure transmission methods for all account information
When updating an existing recipient:
1. Accept only valid, signed, or authenticated authorization requests- Do not accept changes submitted via email, fax, or voicemail
- Never use contact details included in the request
- Confirm changes by phone or in person
4. Implement dual control or multi-factor authentication whenever possible
Ensure that ACH Consumer Authorizations meet the following requirements:
1. Credit (Payment or Payroll) Entries to Consumer Accounts- Authorization may be obtained in writing, verbally, or through other non-written methods.
- Be in writing
- Be signed or similarly authenticated by the receiver
- Indicate whether the entry is single, recurring, or multiple
- State the amount or the method for determining the amount
- Specify timing and frequency (e.g., start date, number of entries)
- Identify the receiver
- Designate the account to be debited (checking or savings)
- Include the date of authorization
- Provide revocation instructions for the receiver
- Authorizations must be retained for two years after the authorization has been terminated.