Standing authorizations
Accept on-demand payments from customers who've pre-authorized future debits—without requiring re-authorization each time.
What is a Standing Authorization?
A standing authorization is an advance consent from a customer for future payments that the customer initiates through a specific action. Unlike recurring payments (which happen automatically on a schedule), standing authorizations let your customers trigger payments on-demand through channels you define—phone calls, your app, text messages, or voice assistants.
Recurring: You initiate payments automatically on a schedule.
Standing: The customer initiates each payment through an action you've pre-authorized (calling, clicking, texting).
Common Use Cases
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Bill pay Customer calls, logs into your app, or texts to pay their credit card or utility bill whenever they want.
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Wallet funding Customer adds money to their e-wallet, gaming account, or prepaid balance through your app.
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Voice assistants Customer says "pay my electric bill" to Alexa, Google Home, or your voice-enabled app.
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Investment accounts Customer funds their brokerage when they want to make a trade, rather than on a fixed schedule.
How It Works with Straddle
A standing authorization has two parts:
- Initial authorization — Customer agrees to let you debit their account for future payments they initiate
- Subsequent entry — Each individual payment the customer triggers through an allowed action
1. Setup (once)
Customer links their bank account and authorizes future bill payments via your app, phone, or text.
2. Payment (each time)
Customer opens your app and taps "Pay Now" → You create a charge with Straddle.
{
"amount": 15000,
"consent_type": "internet",
"authorization_type": "standing",
"device": {
"ip_address": "192.168.1.100"
}
}The authorization_type field tells Straddle this is a subsequent entry under a standing authorization, not a new one-time payment.
Authorization Requirements
Your standing authorization must meet the standard consumer debit requirements, but you can split them between the initial authorization and each subsequent entry.
Initial standing authorization must include
- Customer's bank account information (routing + account number)
- Clear statement that this authorizes future ACH debits
- The specific actions the customer can take to trigger a payment (e.g., "via our mobile app, by calling our support line, or by text message")
- Revocation instructions
Each subsequent entry must capture
- The customer's affirmative action (they clicked, called, texted)
- Timestamp of the action
- Amount being debited
- IP address (if via internet) or phone number (if via phone)
You must be able to prove the customer affirmatively initiated each payment. Logging the IP address, timestamp, and action taken is essential for dispute defense.
Sample Authorization Language
Here's template language for your standing authorization agreement:
Standing Authorization for ACH Debits
I authorize [Company Name] to initiate electronic debits from my bank account at [Bank Name] (Account ending in [XXXX]) for payments I initiate through the following methods:
- The [Company Name] mobile app
- By calling [Phone Number]
- By texting "PAY" to [Short Code]
Each payment will be for the amount I specify at the time I initiate it. This authorization remains in effect until I revoke it by contacting [Company Name] at [Contact Info].
Consent Type Selection
The consent_type for each subsequent entry depends on how the customer initiated that specific payment—not how you obtained the original standing authorization.
| Customer Action | consent_type | Notes |
|---|---|---|
| Clicks "Pay" in your app or website | internet |
Capture IP address |
| Sends a text message | internet |
Wireless network counts as internet |
| Uses voice assistant (Alexa, etc.) | internet |
Voice over network = internet |
Straddle doesn't currently support telephone-initiated (TEL) entries. All subsequent entries should use internet consent type.
Record Retention
You must retain:
| Record | Retention Period |
|---|---|
| Original standing authorization | 2 years after termination or revocation |
| Proof of each subsequent entry initiation (logs showing customer action) | 2 years after the settlement date of each entry |
Store standing authorizations and subsequent entry logs together in your database, linked by customer ID. This makes it easy to pull the complete audit trail if a dispute arises.
Standing vs. Recurring: Quick Comparison
Customer initiates each payment through a defined action (app, phone, text). Variable amounts and timing. You must log proof of each initiation.
You initiate payments automatically on a schedule. Fixed or predictable amounts. Must notify customer of changes to amount or date.