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Updates to NACHA Rules

Effective March 20, 2020

Same Day ACH Dollar Limit Increase-Rule increases the Same Day ACH per-transaction dollar limitation from $25,000 to $100,000.

Effective March 19, 2021

Expanded Access to Same Day ACH-Creates a third Same Day ACH processing window that expands ACH by two hours. This allows Same Day ACH transactions to be submitted to the ACH Network for an additional two hours until 4:45 p.m. ET providing great access for our customers.

Effective June 30, 2021/2022

Data Security Rule- Supplementing Data Security Requirements are extended by one year, to June 30, 2021 and June 30, 2022.

  • Phase 1 of the Rule, which applies to ACH Originators and Third-Parties with more than 6 million ACH payments annually, is now effective on June 30, 2021.
  • Phase 2 of the Rule, which applies to ACH Originators and Third-Parties with more than 2 million ACH payments annually, is now effective on June 30, 2022.

Under the Rule, Financial Institutions, Originators, Third Party Service Providers and Third Party Senders are required to establish, implement and update, as appropriate, security policies, procedures and systems related to initiation, processing and storage of ACH transactions. The new rule supplements the existing rules by requiring ACH Originators and Third Parties to protect account information used in ACH payments by rendering it unreadable when stored electronically. Covered parties are urged to become compliant with the new Rule as soon as circumstances permit, but no later than these new effective dates.

Notice for Reinitiating ACH Returns

It is your responsibility to comply with NACHA Operating Rules & Guidelines when reinitiating a returned ACH origination.

An ACH entry that has been returned may be reinitiated if:

  • The entry has been returned for insufficient or uncollected funds (cannot be reinitiated more than two times after return of original entry); or
  • The entry has been returned for stop payment and reinitiation has been authorized by the Receiver; or
  • The Originator has remedied the reason for the return.

For full details regarding ACH Originator responsibilities you can access your subscription with NACHA at http://www.achrulesonline.org

2020 ACH Bulletins-Regulatory Relief

  • Nacha Relief from Deadlines for Delivery of Certain Records.
    Nacha is providing temporary relief from deadlines for delivery of certain records that are required under the Nacha Rules. Under the Rules, an Originating Depository Financial Institution (ODFI) must provide a Receiving Depository Financial Institution (RDFI) with proof of a Receiver’s authorization (PoA) within 10 Banking Days of receipt of the RDFI’s request. In addition, an ODFI is required to provide a copy of a Source Document for an ARC or BOC Entry, or item for an RCK Entry, within 10 Banking Days of an RDFI’s request. Similarly, an RDFI must provide an ODFI with a copy of the consumer’s Receiver’s Written Statement of Unauthorized Debit (WSUD) within 10 Banking Days of receipt of the ODFI’s request. Nacha understands that these deadlines may cause a challenge in the current environment.

According for the duration of the National Emergency concerning the coronavirus, Nacha will refrain from recommending enforcement penalties for cases in which a PoA, Source Document/item, or Written Statement of Unauthorized Debit is provided after the existing 10 Banking Day time frame but within 20 Banking Days. Nacha encourages ODFIs and RDFIs to cooperate and to fulfill these obligations under the Rules as quickly as circumstances permit. ODFIs and their Originators should be mindful that utilizing a longer timeframe for providing PoAs could lead to an increase in returns based on claims of unauthorized entries. However, the relief provided by Nacha will allow ODFIs, their Originators, and RDFIs to adapt to the new operating environment without risk of enforcement penalties. In addition, Nacha’s Rules enforcement process can accommodate short extensions of required violation responses on a case-by-case basis.

  • Nacha Relief Regarding Potential Rules Violations for Elevated Return Levels.

Businesses that originate pre-authorized ACH debits for services that have been interrupted may face an elevated risk of returns due to consumers who: lack funds (i.e., NSF); place stop payment orders with their own banks; or make claims that debits are unauthorized because they can no longer access the service or have otherwise cancelled service.
Nacha encourages that all such businesses, to the extent possible, communicate clearly with their customers about how they will handle pre-authorized ACH debits during periods of service interruption in light of their own particular set of facts and circumstances.

With respect to potential Rules violations for elevated return rates and levels during this period of usual activity, Nacha will provide relief for potential Rules violations on a case-by-case basis. Nacha will consider,among other things:

  • Whether the debits were in fact properly authorized using good authorization practices;
  • Whether the authorizations remained effective in light of any intervening circumstances;
  • Whether the Originator clearly communicated with its Receivers with respect to ongoing debits; and,
  • Whether the Originator had a prior history of elevated return rates.
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