Can this form be signed electronically?

Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. §7001) and UETA in most states, provided the signer consents and the record is retained.

How do I update bank details?

Submit a new signed authorization with updated routing and account numbers. Payers often require verification (micro-deposits) before switching disbursements.

How can the authorization be revoked?

Revoke in writing to the payer per the revocation clause or by sending a signed cancellation; allow appropriate lead time for processing and final payouts.

What happens if an ACH is returned?

Returned ACHs can trigger bank fees and pausing of payments; provide corrected details promptly and retain communications to demonstrate corrective steps.

Is notarization required?

Not generally required for EFT authorizations, but some payers or state-specific rules may request notarization; check payer policy and state law before notarizing.

How long should records be kept?

Keep signed authorizations for the contract term plus at least three years; healthcare records require six years under HIPAA (45 CFR §164.530(j)).

Electronic Signature
Templates
Legal
Authorization for Electronic Funds Transfer Payment of Revenues/Royalties

Authorization for Electronic Funds Transfer Payment of Revenues/Royalties

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What this Authorization for Electronic Funds Transfer Payment of Revenues/Royalties is

The Authorization for Electronic Funds Transfer Payment of Revenues/Royalties is a written instruction that a payee (owner of rights or royalties) provides to a payer to permit deposit of royalty or revenue payments directly into a designated bank account. It documents payee identity, tax and banking details, consent to electronic transfer methods (ACH, direct deposit), and the effective date for payments. Properly completed, signed, and retained, the form establishes payment routing, reduces check processing, and creates a record of consent and account information for reconciliation and audit purposes.

Why organizations and rights holders use this authorization

An EFT authorization reduces payment delays, lowers administrative costs, and creates a clear legal record of consent to deposit royalties electronically. It supports recurring payments, simplifies tax reporting, and enables faster reconciliation between payer and payee accounts.

Typical users and signers of an EFT authorization

This form is commonly completed by a range of payees and payers involved in recurring royalty or revenue flows.

Independent creators and rights holders who receive periodic royalty checks or distributions from licensors, publishers, or platforms.
Publishers, record labels, platforms, and aggregators that issue recurring payments to multiple payees and need standardized authorizations.
Accounting or treasury staff at paying organizations responsible for vendor setup, payroll-style disbursements, and ACH file preparation.

Ensuring the correct signer and accurate account details at the outset reduces exceptions, returned payments, and compliance risks.

Step-by-step: How to complete the authorization

Follow these steps in order to prepare, verify, and sign the form so payments can be routed accurately and promptly.

01

Prepare: Gather payee legal name, TIN, and bank details.
02

Enter Details: Complete each field using the formats specified above.
03

Sign: Signer states consent and signs, with date in MM/DD/YYYY format.
04

Submit: Return form to payer and retain a copy for records.

How to set up an online EFT authorization workflow

Design a secure electronic workflow that captures payer and payee data, collects consent, and stores an audit trail for compliance.

Field	Configuration
Account Holder Name	Required field; visible to payer for verification
Routing Number	Numeric only; validate via regex or micro-deposit
Account Number	Masked on storage; full value captured for ACH files
Signature and Date	Required eSignature field plus timestamped date

Where to send or file the completed authorization

Route the signed authorization to the payer’s treasury, accounts payable, or vendor onboarding system so it can be entered for payment.

Treasury / AP: Upload to payer’s accounts payable or treasury platform for ACH setup.
Vendor Portal: Submit via the payer’s secure vendor onboarding portal if available.
Email to Finance: Send signed PDF to finance inbox when portal upload is unavailable.
Retain Copy: Store a signed copy in payee and payer records for audit.

Digital signing and technical requirements

Use an eSignature-enabled platform that supports secure PDF signing, strong authentication, and audit trails.

File formats: Accept PDF, DOCX; produce signed PDF/A archives
Authentication: Email link, SMS OTP, or advanced signer verification
Integrations: Connectors for ERP, accounting, and document storage

Ensure the platform you use can export an audit trail (IP, timestamp, signer) and retains records in searchable form for compliance.

Comparing eSignature vendors for processing authorizations

Basic vendor features and starting prices for common eSignature platforms. signNow appears first as the first column per comparison format requirements.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no credit card required	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Essential information to capture on the form

Payee Name: Full legal name

Tax ID: SSN or EIN

Bank Name: Financial institution

Routing Number: Nine-digit ABA

Account Number: Full account number

Account Type: Checking or Savings

Penalties and risks from incorrect or missing information

Backup withholding: 24% if TIN missing

Return fees: Bank charges for invalid routing/account

IRS penalties: Failure-to-file fines — IRC §6721

Payment delays: Payments returned or held pending verification

Fraud risk: Unauthorized changes without authentication

Contract disputes: Disagreements over effective dates

Common mistakes to avoid when preparing this authorization

Entering a nickname or DBA instead of the legal name, which can prevent IRA or tax matching and cause backup withholding.
Providing an incorrect routing or truncated account number; even a single digit error can route funds to the wrong account.
Failing to capture explicit payer consent language for recurring transfers, which can create disputes about authorized timing and amounts.
Not retaining a signed copy with an audit trail; without the record, proving consent or contesting returns becomes difficult.

Real-world examples of how authorizations are used

Below are two common scenarios showing how payees and payers use an EFT authorization to streamline recurring royalty or revenue payments.

Independent Author

An author provides bank details to a publisher, enabling monthly royalty deposits.

Verification uses two micro-deposits to confirm ownership.
Retaining the signed authorization and the verification record simplifies tax reporting and prevents payment interruptions when account details change.

Music Publisher

A publisher collects EFT authorizations from multiple songwriters to consolidate disbursements.

Bulk upload and templated fields reduce manual entry.
Centralized records and recurring ACH reduce processing time and reconcile royalty statements efficiently across many accounts.

Timelines and processing expectations for EFT authorizations

Typical timeframes from authorization to first successful deposit depend on payer onboarding, bank verification, and cut-off schedules.

Submission to payer:

Allow 1–5 business days for internal vendor setup

Bank verification:

Micro-deposit or routing validation can take 1–3 business days

Processing window:

ACH batch processing often follows payer cut-off schedules

First deposit:

First EFT commonly occurs within 3–14 days after setup

Updates to account:

Allow 1–5 business days to apply new bank details

Key milestones from authorization to regular payments

A sequential view of major milestones helps track status and set expectations for payee and payer teams.

01

Request Received

Payer receives the signed authorization and begins onboarding.

02

Verification Complete

Bank or micro-deposit verification confirms account ownership.

03

ACH Setup

Treasury configures vendor in payment system and schedules first payment.

04

Recurring Payments

Payments disbursed per agreed frequency until changed or revoked.

Frequently asked questions about EFT authorizations

Answers to common questions about validity, changing account details, revocation, and what to do if a payment fails.

Need help? Contact support

Can this form be signed electronically?
Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. §7001) and UETA in most states, provided the signer consents and the record is retained.
How do I update bank details?
Submit a new signed authorization with updated routing and account numbers. Payers often require verification (micro-deposits) before switching disbursements.
How can the authorization be revoked?
Revoke in writing to the payer per the revocation clause or by sending a signed cancellation; allow appropriate lead time for processing and final payouts.
What happens if an ACH is returned?
Returned ACHs can trigger bank fees and pausing of payments; provide corrected details promptly and retain communications to demonstrate corrective steps.
Is notarization required?
Not generally required for EFT authorizations, but some payers or state-specific rules may request notarization; check payer policy and state law before notarizing.
How long should records be kept?
Keep signed authorizations for the contract term plus at least three years; healthcare records require six years under HIPAA (45 CFR §164.530(j)).

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