Configure Lithic ACH Auth Rules to selectively approve incoming ACH debits against Lithic-issued Financial Accounts

Steps

1. Understand the default-deny posture: all ACH Debit Receipts are returned by default, so no debit succeeds until you create an APPROVE rule for it
2. Create an account-level CONDITIONAL_ACTION rule on the ACH_DEBIT_RECEIPT event stream with action.type: APPROVE and a condition matching the originator's COMPANY_ID (or company name, SEC code, amount, memo, or timestamp)
3. Promote the draft rule via POST /v2/auth_rules/{token}/promote — rules are created INACTIVE and only affect live ACH receipts after promotion
4. For a stop-payment use case, instead approve all debits program-wide with an empty-conditions APPROVE rule, then add a targeted account-level RETURN rule (with a valid NACHA return code such as R07) to block a specific biller
5. Confirm precedence behavior: when both an APPROVE and a RETURN rule match the same payment, Lithic applies the stricter action and returns the payment