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X12 transaction guide · Finance

EDI 828 Debit Authorization

The X12 document a paying entity uses to tell its bank which debits it has authorized against its account.

Sent by
Paying company (account holder)
Received by
Its financial institution
Standard
ANSI ASC X12

What is an EDI 828?

The EDI 828 Debit Authorization is the ANSI X12 transaction set used to provide information from the paying entity to its financial institution about debits it has authorized against its account. The financial institution holds this information to check incoming debits against it.

Companies protect their accounts from unauthorized direct debits with debit filters or blocks. The 828 lets them maintain the list of authorized debit originators and limits electronically, so legitimate debits from tax authorities or suppliers pass while others are rejected.

How the EDI 828 worksDiagram of the EDI 828 Debit Authorization. Paying company (account holder) sends it to its financial institution. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BAU (Beginning Segment for the Debit Authorization), detail: the required DAD loop with DAD (Debit Authorization Detail) and summary: CTT (Transaction Totals). 0 optional loops are listed by their first segment.How the EDI 828 worksDebit Authorization: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 828SENDERPaying company(account holder)RECEIVERIts financialinstitution997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code DAGS … GETransaction set 828ST … SEHEADINGBAUBeginning Segment for theDebit AuthorizationDETAILRequired loop DAD · repeats manytimesDADDebit Authorization DetailSUMMARYCTTTransaction TotalsBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 828. Your trading partner's implementation guide adds its own requirements.
How the EDI 828 worksDiagram of the EDI 828 Debit Authorization. Paying company (account holder) sends it to its financial institution. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BAU (Beginning Segment for the Debit Authorization), detail: the required DAD loop with DAD (Debit Authorization Detail) and summary: CTT (Transaction Totals). 0 optional loops are listed by their first segment.How the EDI 828 worksDebit Authorization: who sends it, where it fitsand what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 828SENDERPaying company(account holder)RECEIVERIts financialinstitution997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code DA (GS … GE)Transaction set 828 (ST … SE)HEADINGBAUBeginning Segment for theDebit AuthorizationDETAILRequired loop DAD · repeatsmany timesDADDebit Authorization DetailSUMMARYCTTTransaction TotalsBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 828. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 828, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 828 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Authorizing a new debit originator
  • Setting maximum amounts for authorized debits
  • Removing authorizations no longer needed

Where it fits in the document flow

This document 828 Debit Authorization
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 828 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BAU
  • DAD
  • CTT
  • SE

Practical example

The 828 in practice

A company's account has a debit block, but its fuel card provider collects payment by direct debit. The company sends its bank an 828 authorizing debits from the provider's originator ID up to a monthly limit. The bank allows those debits and continues to reject others.

Implementation

Implementation considerations for the 828

  • Keep the list of authorized originators current.
  • Set amount limits that match expected debits.
  • Review authorizations periodically and remove old ones.
  • Coordinate with accounts payable before new direct debits start.

How ECOM helps

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Solution

Financial Document Automation

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Industry

Financial Services

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Solution

Procure-to-Pay Automation

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More general questions about EDI are answered in the EDI FAQ.

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