A regulation requiring the registration of third-party senders – intermediary organisations that send payments through their own bank on behalf of a client – came into effect in the US at the end of last week. The rule means that Originating Depository Financial Institutions (ODFIs) must register their third-party sender customers with NACHA (the US's Electronic Payments Association) through NACHA’s new risk management portal.
Jane Larimer, chief operating officer at NACHA, said: “The implementation of the third-party sender registration rule is an important part of our ongoing efforts to maintain the high quality of the ACH Network. Third-party senders play an important role in expanding access to ACH payments. The new registration process will increase ODFI and industry understanding of third-party senders and will promote ODFI due diligence, as well as standardize a minimum set of customer information that must be available for registration.”
NACHA states that ODFIs will have to provide basic information such as the name and location of third-party senders as part of the registration process. ODFIs that have no third-party sender customers must attest to maintaining no such relationships.
What do ACHs do? The PSD2 corporate opportunity
USA’s NACHA presents strategic direction statements for their ACH network and reveal payment rails opportunity
Strange, but true: Checks/Cheques still matter everywhere
Declining in importance yes, but still vital
Payments update: we are all in the transaction processing business now
Revolution continues: QR codes growing impact, WhatsApp new P2P platform, and TransferWise multicurrency accounts spreading