ACH Block

What is an ACH block?

An ACH block is a fraud prevention service that restricts unauthorized electronic debits from your bank account. ACH fraud occurs when criminals obtain account and routing numbers and initiate unauthorized withdrawals. With an ACH block, all electronic debits are rejected unless specifically authorized by you. This prevents unauthorized parties from pulling funds from your account.

ACH block vs ACH filter

A full block rejects all ACH debits. You must authorize each vendor individually. A filter allows debits from approved originators while blocking unknown ones. Filters provide more flexibility while still protecting against unauthorized transactions. The right choice depends on your payment patterns. Businesses with few recurring ACH debits may prefer full blocks. Those with many may need filters.

Managing authorized ACH transactions

Maintain a current list of authorized originators with your bank. Add new vendors before their first debit. Remove vendors promptly when relationships end. Review exception reports for attempted unauthorized debits. An ACH block that is not actively managed either blocks legitimate payments or fails to prevent fraud. The service requires ongoing attention to provide real protection.