How to establish an ACH (Schwab MoneyLink®) profile

How to establish an ACH (Schwab MoneyLink®) profile

ACH (Schwab MoneyLink) is an electronic funds transfer service that allows your clients to move funds between their Schwab accounts and accounts at other financial institutions. There are no fees to use the ACH (MoneyLink) service.

For faster processing, eAuthorization via the Digital Account Update tool on the Account Management page to establish an ACH profile. You can use the Move Money tool to submit an ACH (MoneyLink) transfer on eligible registration types.

All accounts
  • Schwab account number from which funds will be withdrawn or to which funds will be deposited.
  • Details regarding the other financial institution including the authorized account holders, account number, account type, and  ABA number Tooltip , organization name (if applicable).
  • This information may be found on the client's:
    • Account statement
    • Deposit/withdrawal slip
    • Direct Deposit form (preprinted)
    • Preprinted voided check 
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website).
In addition to the information above, the following account registration specific information may be required
Education savings accountsA completed ESA Distribution form
529 College Savings PlansA completed 529 ACH (MoneyLink) form
  1. Go to the Account Management page on Schwab Advisor Center
  2. Under Digital Workflows choose Update or fund an account
  3. On the next screen, select Update or fund an existing account.
  4. Advance through the screens using the following steps:
ScreenSteps
Accounts
  1. Search for the client’s existing account to update. You can search by account number or client name.  
    Note: Only accounts you have access to in Schwab Advisor Center will show in the search results.  
  2. Select the account to update. 
  3. Under Account Updates, choose ACH (MoneyLink).
    • If you do not see ACH (MoneyLink) as an option, it may be due to the account type and registration being ineligible for ACH set up. Certain account restrictions may also cause ineligibility.
  4. Next, choose Signers. These signers are the clients who will receive the envelope to provide their eAuthorization for the request. The Editor must be selected. This indicates the client who receives the eAuthorization envelope first and will be able to make edits or add details to fields you’ve left blank. 
  5. Review the account, the selected update, signers, and editor before proceeding to the next step. 
ACH Setup

To set up an ACH profile complete the following steps: 

  1. Check the box to request investment advisor authorization to move money and modify recurring transfers between the external bank account and Schwab account on behalf of your client. Your client will need to approve this authorization in their workflow (optional). 
  2. Confirm at least one Schwab account holder on the external account and confirm if a 1st or 3rd party ACH is being requested. Select the applicable Schwab account holder(s) from the list of clients who have been added to this envelope. If at least one Schwab account holder is not on the external account, remove this option from the envelope.

Complete the remaining steps, or opt to leave them for you client to complete. 

Enter the details for the external account: 

  1. Select the external bank account type from the drop-down list of eligible account types. 
  2. Enter the routing number:  
    • If Schwab recognizes the routing number, the financial institution will automatically pre-fill for you.   
    • If not, enter the financial institution name.  
  3. Enter the account number. 
  4. Upload one of the following acceptable forms of documentation to verify the account holder names (optional): 
    • Check image (front only) 
    • Account statement 
    • Deposit or withdrawal slip 
    • Direct deposit form 
    • A letter on official letterhead from the financial institution and signed by an officer.
      • If an account holder's name appears differently on the Schwab account and the external account document, a Second Name Letter/Name Change Form may be required. 

Set the transfer settings: 

  1. Direction: Select the direction of the transfers (into and/or out of the Schwab account). Some of the transfer types may be disabled based on account types selected. 
  2. Recurring: To set up recurring transfers, select the direction, amount, frequency, first send date and second send date. Only eligible transfer types will show based on account type. 
  3. Investment income distribution: Select this option to set up automatic distributions of investment income (Dividends and capital gains, Fixed income interest (including CDs), and/or Money market interest (including Schwab brokerage and Schwab Bank interest) and frequency (monthly, or as it is received). 
    Note: This option does not show if the transfer direction is Into the Schwab account
  4. Acknowledge the Fraud Alert Warning and Acknowledgement
  5. Review the Fraud Alert Warning and Acknowledgement and check the Reviewed radio button before proceeding to the next step.
  6. Add up to 10 ACH (MoneyLink) setups per account. 
Review
  1. After completing the setup for the account in the envelope, review the content of the envelope. 
  2. Fields highlighted in blue will indicate data your client will be required to enter. 
  3. On this screen, take the following actions on any section: 
    • Expand/collapse 
    • Edit 
    • Remove 
  4. When ready to proceed, click Continue.
Finalize and Send
  1. Under this screen:
    • View and edit the envelope name (for your reference only; your client will not see the name). 
    • View content, such as signers and their respective contact information.
    • Select the Delivery Method for collecting your clients’ authorization. eAuthorization is the preferred and quickest option but in some cases where eAuthorization is not available, you can download a prefilled PDF to collect signatures via DocuSign® or by paper.
    • Choose to auto submit the envelope to Schwab once all clients have signed or review the envelope prior to submission. 
  2. When ready, click Send to Client.

After sending the envelope, you will see a confirmation page showing:

  1. Summary of the envelope and next steps
  2. If there are multiple signers on the envelope, the order in which the envelope will be sent to each client.
  3. Links to:
    • Update another account
    • Return to account management
    • Manage envelopes

If you have questions about using Schwab Advisor Center to establish ACH (MoneyLink) transfers, contact your service team.

Once you have submitted the ACH (MoneyLink) request:

  • If eAuthorization was used, your clients will receive both an email and a message in Message Center of Schwab Alliance. Whichever option they use, they will log in with their Schwab Alliance credentials to access and approve the digital envelope. 
  • If forms were submitted using DocuSign, see the What’s next? section of How to use DocuSign.
  • There is a one-time waiting period on the initial setup of an ACH (MoneyLink) profile that can last from three business days to two weeks. You will receive an alert when the initial setup of the ACH (MoneyLink) profile is complete.
  • In the Move Money tool, you can view the established ACH (MoneyLink) profile in the On-Request SLOAs/MoneyLinks section or the Recurring Check/Journal/MoneyLink section.
  • Modify an established ACH (MoneyLink):

 Note: If needing to update any other information, including adjusting the tax withholding elections to 0%, you will need to resubmit the appropriate form with the updated information.

  • If you have questions about using Schwab Advisor Center to establish ACH (MoneyLink) transfers, contact your service team.

To select a form, go to the Forms library on Schwab Advisor Center.

Form: 529 ACH (MoneyLink)
Form: ESA Distribution Form
Form: IRA Distribution Form
Form: ACH (MoneyLink)
Resource: Tax withholding election (TWE) FAQs

Why am I presented with an option to upload a financial document to verify the account holder when using the digital workflow?  
Once the client authorizes the request, we utilize back-end technology to verify the bank account is open and the client is authorized to transact on the account. If we are unable to fully verify the bank details, we rely on supporting bank documentation.

Are there any dollar amount limits or any other limits to ACH (MoneyLink) transactions in the Move Money tool?
There is a limit of $500,000 for each ACH (MoneyLink) transaction. However, there is no limit to the number of transactions that can be submitted to achieve the total desired transfer amount.

Can my client use ACH (Schwab MoneyLink) to transfer funds to/from accounts other than their own?
Your client may establish outbound transfers to a financial institution where your client is not an account owner. In addition to your client’s signature, the outside financial institution account owner must sign the ACH (MoneyLink) authorization form and their signature requires notarization or may be obtained through DocuSign.

If your client is not an account owner on the outside financial institution inbound transfers are not available.  

Can I set up ACH (Schwab MoneyLink) on my fee disbursement account?
Yes. ACH (MoneyLink) may be established to disburse funds from your fee account. The Management Fee Letter of Authorization form may be needed along with the ACH (Moneylink) form.

What information can I update on an ACH (MoneyLink) profile without a client signature?
Any information you have previously requested through your service team without client authorization can be updated online, including:

Additionally, if you were given Investment Advisor authorization while establishing an ACH (MoneyLink) profile, you can update the following information online:

  • Frequency for a recurring setup
  • Process date(s) and end date
  • Amount for a recurring setup

Who within my firm should be given Request ACH (MoneyLink) and Update ACH (MoneyLink) function access?
Only employees authorized to make withdrawal requests on behalf of your firm.

  • Request MoneyLink access allows the user to request a transaction from an existing profile.
  • Update MoneyLink access allows a user to edit the profile information and/or setup a new ACH (MoneyLink) profile.
  • Employees also need Move Money data access to request or update ACH (MoneyLinks) on a specific account.
     

Note: View Move Money function access is also a prerequisite for other Move Money related function access.

Is there a waiting period prior to the first transaction after the initial request for a new ACH (MoneyLink) profile has been submitted?
There is a one-time waiting period that can last three business days to two weeks after the initial setup of a ACH (MoneyLink) profile. Once the setup is complete, a letter is mailed to the client confirming the setup of the ACH (MoneyLink) profile, and an alert is sent when the initial setup of the ACH (MoneyLink) profile is complete. 

How to submit a Schwab MoneyLink® transfer
How to use DocuSign®
Introduction to Schwab MoneyLink®
Introduction to the Move Money tool