HERNDON, Va. (8/27/14)--The voting membership of NACHA, the Electronic Payments Association has approved ballots for two upcoming rules for the Automated Clearing House (ACH) Network.
According to NACHA, the two rules are designed to improve ACH Network quality by reducing the incidence of ACH transactions that result in exceptions and returns.
The ACH Network Risk and Enforcement Rule aims to improve NACHA's ability to identify and enforce the rules against "outlier" originators that may be responsible for the highest, most disproportionate levels of exceptions and returns. Such returns impose costs on Receiving Depository Financial Institutions (RDFI) and can impact consumers.
The amendments related to NACHA's enforcement authority will become effective Jan. 1, 2015, and the amendments related to return rate levels and reinitiated transactions will become effective Sept. 18, 2015.
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. It goes into effect Oct. 3, 2016.
The fee is meant to provide an incentive for ODFIs to implement processes and tools to reduce the number of unauthorized transactions, as well as provide partial cost recovery to RDFIs for handling unauthorized transactions costs.
The Credit Union National Association has submitted comments to NACHA, urging it to minimize costs on credit unions that may be affected and minimize unintended consequences, due to the fact that credit unions generally originate higher quality transactions.
Use the resource link below to access the updates on rules, as well as CUNA's comment letters.