Skip to main content
All CollectionsNovi AMS & QuickBooks Online OverviewAccounting Advanced Troubleshooting
Members (Not Admins) are Required to Opt Into Auto-Pay: Legal, Security, and Compliance Explained
Members (Not Admins) are Required to Opt Into Auto-Pay: Legal, Security, and Compliance Explained

For legal, security, and compliance reasons, Novi requires members to signup for auto-pay themselves and prohibits admins from doing so.

Pete Zimek, CAE avatar
Written by Pete Zimek, CAE
Updated over a week ago

We know that associations prioritize both legal compliance and the protection of member privacy and security. For this reason, administrators are unable to manually sign up members for auto-pay, particularly when using credit cards or ACH. Here’s why:

Legal Considerations

The laws surrounding auto-pay enrollments, particularly those involving credit cards, are complex. Both state and federal regulations in the United States dictate how businesses handle payment information and consent, and these laws can be even stricter in regions like Europe, where the General Data Protection Regulation (GDPR) applies.

  • Consent Requirements: Most regulations require explicit consent from the member for any recurring payment to be set up. Allowing admins to enroll members manually could potentially violate these consent requirements, exposing your organization to legal risks.

  • Varied Jurisdictions: Depending on where your members reside, the laws can vary significantly. Even if it’s permissible in one state or country, it may be illegal in another. As a result, our policy is designed to minimize these risks for all organizations using our platform.

Credit Card Processor Rules

In addition to legal concerns, many credit card processors include clauses in their contracts that require businesses to obtain direct authorization from the customer for recurring transactions. Violating these terms can lead to penalties or restrictions placed on your account by the payment processor.

Security and Trust

Auto-pay involves sensitive financial data, and protecting this information is our top priority. By requiring members to opt into auto-pay themselves, we ensure that they have personally reviewed and consented to the terms of payment, enhancing transparency and trust.

What You Can Do Instead

If you have a small number of members who require personalized assistance, we recommend exploring alternatives like QuickBooks recurring transactions, which offer a documented consent form for recurring payments.

As a reminder, Novi cannot provide legal advice. Please use this article only as a starting point as you consult with your association’s legal counsel.

Did this answer your question?