A signed ACH authorization gives permission to debit an account. It does not schedule a rent payment. You also need a bank or payment provider that accepts the authorization, verifies the account as required, and submits the debit.
That distinction matters if you’ve downloaded a form and are wondering what to do next. Before asking the tenant to sign it, ask your payment provider whether it accepts paper authorizations or requires enrollment through its own system.
What the tenant authorizes
For recurring debits from a consumer account, Regulation E requires signed or similarly authenticated written authorization and a copy for the consumer. Electronic consent must document the consumer’s identity and agreement to clear terms. See CFPB’s Regulation E § 1005.10(b).
Review these details before the tenant signs:
- Who is authorizing payment and who will initiate it
- Which account will be debited, identified through a secure process
- The rent amount and payment schedule
- When recurring payments start and, if known, end
- How the tenant can revoke authorization
- How both parties will retrieve the consent record
A checkbox can be part of an electronic authorization flow. What matters is the terms shown with it and the record of consent, not the checkbox alone.
Authorization and payment setup are separate steps
| Step | What it does | What to check |
|---|---|---|
| Authorization | Records the tenant’s permission | Amount, schedule, consent, cancellation instructions |
| Account setup | Connects the bank account to the payment service | Required verification is complete |
| Scheduling | Creates the recurring payment instruction | First debit date and amount are correct |
| Payment tracking | Shows whether the debit succeeds or is returned | Rent is recorded against the correct tenant and period |
A hosted enrollment flow can combine the first two steps. Confirm that a recurring schedule has also been created; saving a bank account does not necessarily turn on autopay.
Who sends the debit to the bank?
Nacha distinguishes the originator, which initiates the payment with the account holder’s authorization, from the originating bank, which forwards it into the ACH network. A processor or other service provider may perform parts of that work. Using a processor does not automatically make it the originator or remove the landlord’s obligations. Nacha’s ACH guide describes these roles and the originator’s responsibility to obtain and prove authorization.
For a landlord, the practical options are a business bank’s ACH service, a payment processor, or a rent platform built on a processor. Ask the provider:
- Which authorization flow must I use?
- Who retains the record, and how can I retrieve it?
- Who handles a cancellation, failed payment, or dispute?
- When is a payment initiated, and when are funds expected to be available?
Stripe, for example, documents its bank-account verification, mandate collection, confirmation emails, and cancellation process in its ACH Direct Debit documentation. The steps depend on the integration; a standalone paper form does not replace them.
What the free template actually produces
The authorization generator produces text to copy into a document. It includes the tenant, property, landlord, bank name, account type, last four account digits, routing number, rent amount, and a signature line.
The current template uses the first of each month, or the next business day, as its schedule. It includes a general written-cancellation sentence. Those are draft terms: edit the copied document if your arrangement differs, and add the provider’s required cancellation contact, timing, and instructions before asking for a signature.
The tool does not collect a signature, verify an account, enroll a tenant, or initiate payments. It also does not produce a fillable PDF. Keep the signed authorization securely and give the tenant a copy.
Changes to the amount or schedule
For varying recurring amounts, Regulation E generally requires written notice of the amount and date at least 10 days before the transfer. It also permits agreed notification thresholds or ranges under specified conditions. Review § 1005.10(d) with your provider before adding utilities, late fees, or a rent increase to an existing debit.
For example, an authorization for $1,850 rent should not be treated as permission to withdraw whatever balance happens to appear on the ledger. Check the authorization and the provider’s change-notification process first.
Cancellation and stopped payments
A consumer can stop a scheduled recurring transfer by notifying their bank at least three business days beforehand. The bank may require written confirmation of an oral request. See § 1005.10(c).
When a tenant revokes authorization, follow the provider’s process to stop future debits and check any payment already in progress. Agree on another way to pay any rent still owed. Cancellation of a debit and cancellation of a rent obligation are separate questions.
Keep bank information in the payment flow
Have tenants enter bank details through the provider’s enrollment process. Avoid requesting full account numbers in a text or ordinary email. If your bank requires a paper form, use its instructions for secure collection and storage.
Once setup is complete, check the first payment’s status before marking rent paid. ACH payments can fail or be returned; enrollment alone is not confirmation that money arrived.
If the tenant currently uses Zelle, the switch-to-autopay messages can help explain the first debit date and the handover between payment methods. Confirm that date together so the tenant does not send Zelle for a rent payment that is already scheduled.
