New 2010 ACH RulesListed below are ACH Rule Updates that have recently taken effect...
Authorization & Returns
The Authorization and Returns Rule will enhance the quality of transactions in the ACH Network by more clearly defining an Originator's obligations for obtaining a consumer's authorization, and by improving processes related to the return of debits that Receivers claim are unauthorized. Specifically, these changes clarify that a consumer debit authorization must be clear and readily understandable in its terms, and that any purported authorization that does not meet these criteria is not a valid authorization under the Rules. The Rule also provides greater definition and clarity with respect to an RDFI's obligations for obtaining and providing a consumer's written statement that a debit was not authorized, improving the efficiency with which unauthorized debits are handled by DFIs.
Approved May 1, 2009 | Effective March 19, 2010
Stop Payments and Regulation E
This Rule on stop payments will re-align the NACHA Operating Rules with the requirements of the Federal Reserve Board's Regulation E ("Reg E"). As the Federal Reserve Board's Staff Interpretation of Reg E has changed over time, there has been a divergence between the Rules and Reg E with respect to the intent of, and processing requirements for, stop payment orders on ACH debits. These differences have become significant enough to result in the potential for RDFIs to have difficulty reconciling their obligations under both the Rules and Reg E. This Rule will revise specific language regarding the expiration of a stop payment order that may create confusion for RDFIs in light of the requirements of Reg E. The Rule also adds language clarifying that the stop payment order would remain in effect until all entries related to the Receiver's stop pay instruction have been stopped. The Rule will not alter the manner in which an RDFI returns an entry as payment stopped via the ACH Network - a stop payment order is placed in advance of receipt of a specific entry or entries and ensures that the entry(ies) does not post to the Receiver's account. The RDFI would return any such entry it receives using return code R08. The Rule also will have no impact on an RDFI's obligations with respect to re-crediting an entry that has posted to the Receiver's account for which the Receiver claims that authorization was revoked. In such a case the RDFI is responsible for obtaining the Receiver's written statement, re-crediting the account, and returning the entry using return code R07.
Approved May 1, 2009 | Effective March 19, 2010
Risk Management and Assessment
The Risk Management and Assessment Rule requires all Participaing DFIs to conduct a risk assessment of their ACH activities, and to implement risk management programs based on the results of such assessments, in accordance with the requirements of their regulator(s). The Rule also provides that each ODFI has the right to terminate or suspend an Originator, or any Originator of a Third-Party Sender, for breach of the Rules; and the right to audit an Originator's, or Third-Party Sender's and its Originators', compliance with the agreement and the Rules. In addition, the Rule requires an ODFI to expressly address each of the foregoing, as well as any restrictions on ACH origination activity, within a new or renewed agreement with an Originator or Third-Party Sender. The Rule does not prescribe new restrictions on origination activity. Rather, the Rule requires each ODFI to address its internally developed restrictions on origination, if any, within its Originator and Third-Party Sender agreements so as to highlight the importance, and improve the enforcement, of such restrictions. The Rule also requires ODFIs to perform a more comprehensive set of risk management practices in addition to the current rules on exposure limits.
Approved May 1, 2009 | Effective June 18, 2010
Direct Access Registration Rule
The Direct Access Registration Rule will require each ODFI to register its Direct Access status with NACHA. For an ODFI that has Direct Access relationships for debit origination, the rule will require the ODFI to provide NACHA with specific information about each Originator or third-party with Direct Access, as well as data about that party's transaction volume. The rule will also require an ODFI's board, committee of the board, or its designee to approve a Direct Access debit participant before the ODFI can originate ACH debit entries for that Originator or third party. This rule is related to NACHA's broader Risk Management Strategy.
Approved September 16, 2009 | Effective June 18, 2010
Additional Resources
NACHA - The Electronic Payments Association | ACH Rules Tab - Recent Amendments
Kip Poe, VP - Information & Technology, AAP, Kansas Corporate Credit Union
