Authority, Authentication and Account Validation: A Review of Legal Obligations, Liabilities and Risks, and Practical Approaches

Initiating transactions electronically involves a careful consideration of how we identify account owners, ensure the proper authority is obtained, and validate the intended accounts. There is no single "right" way to make sure a transaction is authorized, authenticate an accountholder, and conduct account validation, and new technologies and industry trends offer options to choose from. Learn how to interpret the rules, understand potential liabilities, and hear about benefits and pitfalls associated with different options for these key ACH requirements and when systems or methods must be "commercially reasonable" (and what that means).