NACHA —The Electronic Payments Association ® today announced its voting membership approved two new amendments to the NACHA Operating Rules that will further improve ACH Network quality by reducing the incidence of ACH transactions that result in exceptions and returns. As components of NACHA’s long-term Risk Management Strategy, updated in 2012, the Rules amendments are part of NACHA’s ongoing efforts to maintain and improve the strength of the ACH Network for the consumers, governments, businesses and financial institutions that move their money via ACH.

The “ACH Network Risk and Enforcement” Rule improves NACHA’s ability to identify and enforce the Rules against “outlier” Originators that may be responsible for the highest, and most disproportionate levels of exceptions and returns, which impose costs on Receiving Depository Financial Institutions (RDFIs) and can impact their customers. This new Rule

• establishes an inquiry process that allows NACHA to research the facts behind an Originator’s ACH activity
• lowers the existing return threshold for unauthorized transactions
• expands NACHA’s authority to enforce the Rules related to unauthorized transactions.
• defines permissible practices for use of the ACH Network to collect transactions returned for insufficient funds and other reasons.  Standard information required to be included in a “reinitiated” transaction will better enable financial institutions’ stop payment systems to work efficiently.

Establishing an unauthorized entry fee

The “ACH Network Quality” Rule defines the methodology for establishing an Unauthorized Entry Fee to be paid by an Originating Depository Financial Institution (ODFI) to a RDFI for the return of an unauthorized transaction. NACHA believe that an Unauthorized Entry Fee will provide an incentive for ODFIs to implement processes and tools with their Originators that reduce the number of unauthorized transactions.  The fee also will provide partial cost recovery to RDFIs for their costs in handling unauthorized transactions.

Education and support

In preparation for implementation of these rules, NACHA will provide education and resources to help ACH Network participants better understand the impact of the Rules.

For more information about the ACH Network Risk and Enforcement or ACH Network Quality Rules, see: https://www.nacha.org/rules/updates