An ACH payment authorization form is a paper or electronic form usually filled out by both a customer and vendor. The authorization form typically gives a vendor permission to automatically debit or credit funds to a customer's financial institution at an agreed upon date, amount and frequency.
Proof of a customer's authorization is often required by company policy before any ACH transactions may take place. ACH payments are often used to purchase items or to set up automatically recurring electronic payments from a customer to a vendor. These transactions may originate from bank accounts, credit card accounts or other financial accounts. ACH payments may also take the place of paper checks in financial transactions.