500.8 - Statewide Accounting Policy - Authorization for ACH Transactions

Policy Area:  eCommerce
Policy Sub Area:  N/A
Authority:  G.S. 143B-426.39(1) and (5); G.S. 147-86.11(a); G.S. 147-86.22(b); and Chapter 66, Article 11A (G.S. 66-58.1 through 66-58.19)
Effective Date:  4/12/2002
Last Revision Date:  N/A
Policy Owner/Division:  Statewide Accounting

Policy

All State agencies or other participants utilizing Electronic Funds Transfer (EFT), whether through the OSC’s Master Services Agreement or under separate arrangement, shall develop procedures to ensure compliance with all NACHA operating rules, specifically as they pertain to Receiver (i.e. citizen or business) Authentication and Authorization, before originating debit or credit entries against the Receiver’s account (Article Two). This includes signed or written authorizations provided electronically in accordance with the Electronic Signatures in Global and National Commerce Act (15 U.S.C §7001 et seq.) which defines electronic records (as contracts or other records created, generated, sent, communicated, received, or stored by electronic means) and electronic signatures. The following guidelines should be addressed in the procedures:

  • The obtaining of written or signed authorization of the Receiver to originate credit and/or debit entries. The authorization will constitute an agreement with the Originator under which the Receiver has agreed to be bound by the NACHA operating rules.•
  • Retention of authorization and any revocation of authorization (minimum of two years).
  • Describe the process of revoking an authorization.
  • Any particular requirements relating to employees, vendors, or other category of Receivers. 
  • The obtaining of written or signed authorization of the Receiver to originate credit and/or debit entries. The authorization will constitute an agreement with the Originator under which the Receiver has agreed to be bound by the NACHA operating rules. 
  • Retention of authorization and any revocation of authorization (minimum of two years). 
  • Describe the process of revoking an authorization. 
  • Any particular requirements relating to employees, vendors, or other category of Receivers. 

Procedures

N/A

Accounting Guidance

N/A

Related Documents (Memos/Forms)

N/A

Revision History

  • None to date