What ACH authorization is
ACH authorization is consent given in the MCA agreement for scheduled electronic debits from a designated business bank account. It defines the amount, frequency, and account for repayment.
ACH authorization is not account ownership or control
Authorizing ACH debits does not mean the MCA provider owns or controls your bank account. It does not give unrestricted access to your funds, and it is not the same as a security interest, a UCC filing, or a court judgment. These are different concepts with different consequences.
Scheduled debits
Debits may be daily, weekly, or at another interval set by the agreement. The amount may be fixed or variable. Understanding the schedule helps you anticipate its effect on operating cash.
Returned payments
A debit that cannot clear due to insufficient funds may be returned, which can trigger additional fees, re-presentment, or default provisions under the agreement. The consequences depend on the agreement's terms.
Stacked withdrawals
When multiple advances each authorize separate debits, the combined daily or weekly withdrawal can exceed what the business can sustain. Understanding the total obligation across all agreements is critical.
What to understand
Review each agreement's authorization, payment status, any UCC filings, and how withdrawals interact with processing and operating cash. This information is educational. Where legal rights are active or disputed, consult qualified counsel. MyMerchantProcessor does not provide instructions for evading authorized or lawful collection.
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