TL;DR: Choose "internet" for electronic consent obtained via web or mobile apps. Choose "contract" for signed agreements, including e-signatures like DocuSign, obtained before initiating payments.
NOTE: If you're a B2B company that holds signed contracts, even though you may submit payments via the web portal or payment app, you would select "Contract".
Understanding Consent Methods: Internet vs. Contract
During the Straddle application process, you will be asked to select how you obtain authorization for electronic payments from your customers. Choosing the correct method is crucial for payment compliance per regulators like Nacha. The two options are "internet" and "contract."
Authorization Use Case | Consent Method to Select |
Business to Business contract | Contract |
Business to Consumer contract | Contract |
Web Authorization via payment portal or mobile application | Internet |
Note: you can select both Contract and Internet options if your business uses multiple consent methods.
Internet Consent
Select this option if you collect electronic consent through a web portal or mobile application.
Examples:
Customers agree to terms by clicking a "checkbox" agreeing to electronic consent
Users authorize payments within your mobile app
Consent is given through an online form submission
Takeaways:
Typically used for digital-first businesses
Suitable for recurring payments set up online
Must comply with electronic consent regulations
Contract Consent
Select this option if you obtain a signed agreement from your customer before initiating a payment; this includes electronic signatures.
Examples:
B2B or B2C contracts signed in person or E-signature services like DocuSign, Adobe sign, etc
Emailed agreements returned with a digital signature
Takeaways:
Often used for high-value or long-term agreements
Use this option for business-to-business transactions