Service Titan Knowledge Base

Guide to ACH payment complianceLast updated on 03/22/2022

This guide provides an overview of ACH payment compliance features in ServiceTitan. ServiceTitan features have been built in the office to comply with ACH authorization requirements. Office employees are required to specify how they obtained ACH authorization by selecting the Authorization Method and answering a question regarding how they obtained authorization, based on the Authorization Method to process the ACH payment.

New ServiceTitan features have been built in the office to better support the National Automated Clearinghouse Association (NACHA) compliance for processing ACH payments through ProfitStars. ProfitStars is the check processor for ServiceTitan Payments. ProfitStars routinely audits merchants for proof of ACH authorization. Repeated failure to comply with NACHA regulations may result in termination of your merchant account.


Things to know

  • Any changes as noted in this guide are only applicable to ACH when processed through ProfitStars, which occurs when the office manually enters the account and routing number to process payment. Changes do not affect Mobile Check Capture, which occurs when a technician takes a photo of a check for processing.

  • ServiceTitan recommends following these best practices to ensure your business is compliant with NACHA regulations:

    • When processing ACH payments through the office, you must collect authorization from the account holder. Authorization is permission from the account holder to debit their bank account. Authorization must be readily identifiable as an authorization with clear and understandable terms and must provide that the receiver may revoke the authorization in the manner outlined in the authorization.

    • When processing checks in the office as ACH transactions, complete the Authorization Method field to show proof of compliance during ACH regulation audits.


Breakdown of authorization methods

When processing checks in the office as ACH transactions, complete the Authorization Method field to be compliant with ACH regulation audits. You can select Telephone, Mail, or In Person to complete the Authorization Method field. Below is a breakdown of each authorization method.

Telephone authorization method

Select Telephone as the Authorization Method if you have received verbal authorization from the account holder over the phone. The authorization must be readily identifiable as an authorization with clear and understandable terms and must provide that the receiver may revoke the authorization in the manner outlined in the authorization.

The following information must be included as part of the telephone authorization:

  • The amount of the transaction or a reference to the method of determining the number of recurring transactions

  • The payment time or the start date, number, and/or frequency of the electronic fund transfers from the customer account for recurring transactions

  • The account holder name or identity

  • Your customer service telephone number

  • The date of the account holder voice authorization

When you select Telephone as the Authorization Method, ServiceTitan automatically creates an email notice for telephone authorization. ServiceTitan sends the email notice to the customer anytime you process an ACH transaction and select Telephone as the Authorization Method. Below is a sample email notice for telephone authorization.

Mail authorization method

Select Mail as the Authorization Method if your customers have mailed you payment with a signed authorization form. Include the authorization form as a separate tear-off or coupon with the invoice.

In Person authorization method

Select In Person as the Authorization Method if you have received authorization in-person from the customer.

Technicians obtain the account holder's signature while they are out in the field. The office can either create a new form for the ACH Authorization, or they can add the authorization as part of the work acknowledgment template. If the office adds the authorization as part of the work acknowledgment template, you maintain a digital copy of the authorization in ServiceTitan. Below is a workflow for inserting the ACH payment authorization agreement into the work acknowledgment template and a sample ACH payment authorization agreement.

Note: You must retain copies of the Authorization for at least two years to be able to provide them to NACHA if requested.


Insert the ACH payment authorization agreement into the work acknowledgment template

To insert the ACH payment authorization agreement into the work acknowledgment template, complete the following:

  1. Navigate to Settings > Operations > Business Units.

  2. Click Edit next to the business unit you wish to upload an ACH payment authorization to.

  3. Click the Details tab.

  4. Enter in your ACH payment authorization agreement in the Acknowledgment Paragraph field. Technicians can view the authorization agreement in the field and collect an account holder signature. You must have a signed copy of the ACH Payment Authorization Agreement before you may add an ACH Payment in the office. Below is a sample ACH payment authorization agreement.

Note: Please replace [company name] with your company name and [customer service phone #] with your customer service number below.

For more information on Agreement and Acknowledgment paragraphs, see Add and edit business units.


Process ACH payment in the office

When you collect ACH payment in the office, complete the Authorization Method field on the Charge Bank Account screen to show proof of compliance during ACH regulation audits.

To collect ACH payment in the office, complete the following:

  1. Navigate to the invoice.

  2. Click Add a Payment.

  3. Use the Type dropdown to select ACH and enter any additional fields as desired.

  4. When you're finished, click Charge Account as you normally would. The Charge Bank Account screen appears.

  5. Use the Authorization Method dropdown to select Telephone, Mail, or In Person. This is a required field that must be filled out when you process an ACH payment in the office.

    • If you select Telephone, enter the Account Owner’s Email. This is the email that the Authorization Notice is sent to. A copy of the email can also be saved as proof of Authorization.

    • If you select Mail or In Person, you have the option to Upload a copy of the signed authorization or Attach Invoice to the payment.

      • If you click Upload, the file you upload can be pulled if requested by ProfitStars.

      • If you check Attach Invoice, the invoice PDF automatically uploads as the proof of authorization when the payment is processed.

  6. Enter additional fields as you normally would.

  7. When you're finished, click Charge.


Best practices for processing checks in Mobile

ACH Payment compliance workflows in this guide are only applicable to ACH transactions in the office. ACH Payment compliance does not affect Mobile Check Capture. Below yare best practices for collecting payment in the field.

If you have any questions, please contact the ServiceTitan Payments Team at paymentsupport@servicetitan.com.


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Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.