When collecting E-Check payments, customer authorization is required to comply with banking and legal regulations, especially for payments taken over the phone. SmartMoving provides an approved authorization script to help ensure payments are properly documented and compliant.
When Customer Authorization Is Required
Customer authorization is required any time you collect an E-Check payment, including:
Payments taken over the phone
Payments initiated in the web app with a customer present
Any situation where bank account details are provided verbally
Authorization helps protect both your business and your customer by confirming consent before funds are withdrawn.
Using the Approved Authorization Script
For phone-based E-Check payments, you must read the authorization script to the customer before processing the payment. This script is displayed directly in SmartMoving during the payment flow and should be read verbatim.
Approved Authorization Script
“[Full Name], by providing your bank account information and verbal authorization today, [DD/MM/YYYY], you [Full Name] are authorizing [Company Name] to create an E-Check debit to your account and that this Check by Phone may be drafted from your account as early as today. In the event your Check by Phone is returned from your bank unpaid, you further agree that a fee of $25.00 or as allowable by law shall also be charged to your account via draft or E-Check debit. Do you authorize [Company Name] to proceed with this Check by Phone?”
After reading the script:
Ask the customer to clearly confirm their authorization.
Select Yes in SmartMoving to proceed with the payment.
Legal Considerations
E-Check payments are governed by ACH and banking regulations. Proper authorization ensures:
Customer consent is clearly documented
Your business is protected in the event of a returned payment
Chargeback disputes can be resolved more efficiently
Failure to obtain proper authorization may increase liability and reduce the likelihood of successful dispute resolution.
Authorization for Customer Portal Payments
When customers submit E-Check payments through the Pay Your Invoice portal, authorization is handled digitally. Customers confirm payment details and consent as part of the checkout process, and identity verification may be required using a one-time passcode (OTP).