Customer payment notifications (when are they required?)
Last editedApr 20231 min read
There are two factors that determine when notifications are required, and there are rules governing when these notifications must be delivered.
Notifying your customer about an ACH payment is required when there are changes to either:
Payment frequency, or
What constitutes a change depends on what the original debit authorization specified.
In cases where you need to take payments that vary in frequency or amount, you’ll need to give your customers advanced notice before any money leaves their account. Nacha rules suggest:
10 calendar days in advance if the payment amount changes from the previously taken amount, or if it exceeds the maximum value that the customer has previously agreed on
7 calendar days in advance for a change in date (unless the change is due to a weekend or holiday)
However, it is within a business’ rights, and often in the customer’s interest, to use alternative timings. Alternative timings, however, must be explicitly agreed to by the customer during the set up of the authorization.
How to collect ACH Debit payments with GoCardless
Create your free GoCardless account, access your user-friendly payments dashboard & connect your accounting software (if you use one).
Easily set up & schedule ACH Debit payments via payment pages on your website checkout or secure payment links.
From now on you'll get paid on time, every time, as GoCardless automatically collects payment on the scheduled date. Simple.
Looking for an easy & affordable way to collect ACH payments?
GoCardless saves merchants time, money & stress collecting ACH payments.
Customer payment notifications and GoCardless
If you use GoCardless as your TPPP, our bank-approved, fully compliant authorization forms are balanced to best meet the needs of both your business and your customers. The customer payment notification timings are:
2 calendar days in advance if the payment amount changes from the previously taken amount, or if it exceeds the maximum value that the customer has previously agreed on
2 calendar days in advance for a change in date (unless the change is due to a weekend or holiday)
You can find out more about collecting ACH debit with GoCardless in Chapter 4.