ACH Authorization Agreement Template for Indonesia

The ACH Authorization Agreement serves as a crucial document in Indonesia's electronic payment ecosystem, enabling automated fund transfers between bank accounts in accordance with Bank Indonesia regulations. This agreement is essential when establishing recurring payment arrangements, direct deposits, or automated bill payments within the Indonesian banking system. It should be used whenever a business or individual needs to set up automatic debits or credits from their bank account, ensuring compliance with Indonesian payment system laws and data protection requirements. The document includes specific provisions required by Indonesian banking regulations, authorization parameters, security protocols, and consumer protection measures. This standardized agreement helps streamline payment processes while maintaining regulatory compliance and protecting all parties' interests in electronic fund transfers.

1. Parties: Identification of the account holder/customer and the financial institution

2. Background: Context of the agreement and the purpose of establishing ACH authorization

3. Definitions: Definitions of key terms including ACH, debit, credit, business days, and other relevant banking terms

4. Authorization Grant: Express authorization for initiating debit/credit entries to the specified account

5. Account Details: Specific account information including account number, bank details, and type of account

6. Transaction Types: Types of authorized transactions (one-time, recurring, variable amounts)

7. Processing Requirements: Timing, notification requirements, and processing parameters for ACH transactions

8. Security Procedures: Security measures and verification procedures for ACH transactions

9. Representations and Warranties: Customer declarations regarding account ownership and authority to authorize transactions

10. Fees and Charges: Any fees associated with ACH services and payment terms

11. Term and Termination: Duration of authorization and procedures for termination or revocation

12. Governing Law: Application of Indonesian law and relevant banking regulations