Introduction to move money eAuthorization

eAuthorization is the fastest, most secure method of obtaining client approval. eAuthorization allows your client to digitally approve money movement requests (checks, internal transfers, wires) initiated on Schwab Advisor Center®. (ACH transactions don’t require authorization after the initial profile is approved by your client.)  After submitting your client's request for digital approval, eAuthorization notifies your client via email or on the Schwab Mobile® app. Your client can securely log in and approve the request using their Schwab Alliance credentials. Schwab will process the transaction once approval is received, and you can see the status and view the transaction details on the Move Money tab. You will also receive an alert when the client submits their approval or rejects the request.

Looking for eAuthorization information specific to digital boarding and account maintenance? See Introduction to digital onboarding and account maintenance eAuthorization.

Use the following tools and resources for more on move money eAuthorization:

Move money eAuthorization quick guide Get an at-a-glance overview of the eAuthorization process for you and your clients.
How to invite clients to Schwab Alliance Get information on how to invite your clients to Schwab Alliance outside of the Move Money tab. They will need access for move money eAuthorization transaction.
Schwab Alliance Support Guide A detailed guide to the Schwab Alliance and move money eAuthorization workflow from you and your client's perspectives.
Moving Money on Schwab Advisor Center A step-by-step guide that includes how to help clients approve money movement transactions using eAuthorization.
The Client Learning Center A website to share with your clients to help them prepare to use eAuthorization and digital tools.
eAuthorization Video Share with clients to show them the move money eAuthorization process.

Introduction to move money eAuthorization

 

 

  • The fastest, most secure method of obtaining client approval for money movement
  • Streamlines the client approval process and provides a better client experience by eliminating the need to print, sign, and fax paper forms
  • Simplifies monitoring by providing approval status updates on the Move Money tab on Schwab Advisor Center. Click View Status next to the specific transactions in the recent transactions table to see whether your client has approved the transaction yet and which email the eAuthorization message went to.
  • Leverages advanced authentication tools to help protect you and your client against fraud (for additional security, Schwab may require your client to enter an access code provided during their login process).
  • Uses technology-based security controls instead of signature verification, allowing Schwab to offer priority processing over traditional paper one-time authorization forms and an extended wire cutoff time for eAuthorized wires.

Key information related to eAuthorization and the Move Money tool:

  • eAuthorization requests are initiated using the Move Money tool on the Schwab Advisor Center and require the approval of one account holder.
  • To initiate requests for eAuthorization, your firm must have View and Update security access to move money and one of the following authorities on the account:
    Withdrawal power financial advisor (WPFA)
    Withdrawal power financial advisor-custody (WPFA-C)
    o Limited power financial advisor (LPFA) Tooltip  or non-discretionary financial advisor (NDFA) Tooltip
  • To create a standing authorization all account holders must electronically approve the initial instructions, unless it's for an Organizational account.
  • Wire requests approved via eAuthorization before 4:30 p.m. ET will be eligible for extended same day processing.
  • Participating clients must have schwaballiance.com access and a valid email address to approve the request electronically.
    o If your client is not enrolled in schwaballiance.com, they will be taken through the steps to create a login ID and password prior to seeing the request details.
    o Also verify that they have a current phone number on file in the Account, Profiles tab.

Note: International clients are not eligible for eAuthorization. For details, see Eligibility section.

For additional information regarding eAuthorization, refer to the following:

  • IRA distributions: Your client will need to confirm the tax withholding election Schwab has on file. If changes need to be made, update the tax withholding settings when entering the distribution through the Move Money tool.
  • Expiration dates: Your client will have seven business days to approve the request, after which time it will be cancelled. You will receive a reminder alert on the third business day, if the request has not been approved by your client.
  • Account profile changes: A recent profile change may require that your client go through the advanced authentication process. If your client’s phone number has changed, the new number cannot be used to deliver an access code, if one is required. Your client will have the option to call Schwab to verbally authenticate and obtain an access code for use in the approval process.

Most request types are eligible for eAuthorization for registration types supported for Move Money.

Ineligible requests:

  • International wires
  • Internal position transfers (position journals)
  • Schwab Bank® distributions (e.g., Schwab Bank Investor Checking™, Pledged Asset Line®)
  • Disbursements from education savings accounts
  • Check or internal transfer requests from custodial IRAs
  • Refer to Registration types not supported for Move Money

My client misplaced the approval email for eAuthorization. How can I send them another one?
There is no need to send another email.  Your client can simply sign into Alliance.com and go to their Secure Message Center to see the eAuthorization request and approve the transaction.

Why did my client not receive a push notification from the Alliance mobile app?
Your client needs to provide the app with permission to send push notifications on their phone.  They can adjust this in the app settings.

How can I set up the email address for sending the eAuthorization message?
If your client hasn’t used eAuthorization before and needs to set up their Alliance credentials, you can fill in their email address on the eAuthorization tab in the Move Money tool.  This will send the client an email to set up their online access.  You can also add an email during the transaction setup process, and Schwab will send a message to both set up their access and approve the awaiting transaction.

Does my firm need to verify the wire to ensure its legitimacy when using eAuthorization?
Yes, it is always best practice to confirm the transaction with your client, even when you are using eAuthorization for additional security.  When you set up the transaction through Move Money, you will be reminded of this and asked to acknowledge that you’ve verified the instructions.

What controls do you have in place to prevent a fraudulently placed wire?
Wires are deemed high-risk transactions because the funds are leaving client accounts and there are limits to recovering funds. Schwab has both technical and operational controls that enable us to detect potentially fraudulent transactions. Using eAuthorization also reduces your risk of fraud. We regularly review our controls with internal and industry experts to ensure their effectiveness. In the event of a potentially fraudulent transaction, we will conduct an investigation. Visit schwab.com/SchwabSafe for more information.

eAuthorization video
How to create a standing authorization
How to invite your clients to Schwab Alliance
Introduction to the Move Money tool
Introduction to Schwab Alliance
Move Money step-by-step guide