Skip to content

Sending Blanket Letter to Vendors (ACH)

Answered by: 

My accounting department asked whether there were any compliance issues with sending a blanket letter to our vendors (not customers) to request they provide ACH info so we can pay them more efficiently. I don't see any issues with paying via ACH, but I am concerned we may need to include some privacy disclosures or some such. Any guidance?

There are no privacy issues here; the vendors aren't consumers, nor are they customers. Soliciting the vendors' account information for ACH payments can be more efficient that payment by check, assuming your institution has the appropriate ACH-file-generation features in its accounts payable package. Make sure you have a way to notify the Receivers of the invoices that you are paying with each ACH credit entry you send their way. I also recommend that you generate a pre-note for each vendor before sending any actual dollar entries.

First published on 06/09/2014

Filed under: 
Filed under compliance as: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics