ACHZone

Nacha Rule Changes

• June 30, 2021 | Supplementing data security requirements (Phase 1)

  This rule – implemented in two phases – adds stricter requirements to protect account numbers used in the initiation of ACH entries. Phase 1, which applies to originators and third-parties with more than six million ACH payments annually, takes effect June 30, 2021. Phase 2, which applies to originators and third-parties with more than two million ACH payments annually, takes effect June 30, 2022. Additional details are available at www.nacha.org.

• June 30, 2021 | Limitation on warranty claims

  This new rule limits the length of time in which an RDFI is permitted to make a claim against the ODFI’s authorization warranty.
  
  For an entry to a non-consumer account, the time limit will be one year from the settlement date of the entry.
  
  For a consumer account, the limit will cover two timeframes for an entry: 1) The first 95 calendar days from the settlement date of the first unauthorized entry to the consumer’s account will always be covered; 2) After the first 95 days, two years from the settlement date of the entry (or the last two years) will be covered. Visit www.nacha.org for further insight on this rule.

• June 30, 2021 | Reversals

  Intended to address improper uses of reversals, this rule expands the permissible reasons for a reversal to include a “wrong date” error. The reasons now include the reversal of a debit entry that was for a date earlier than intended by the originator, and a credit entry that was for a date later than intended by the originator. The rule also establishes formatting requirements beyond the current standardized use of the Company Entry Description field. More details can be found at www.nacha.org.

• September 17, 2021 | Meaningful modernization

  This series of four rules: 1) defines a “standing authorization;” 2) allows originators flexibility in using SEC codes for individual subsequent entries; 3) defines and permits “oral authorization” as a valid authorization method for consumer debits distinct from a telephone call; and 4) gives an ODFI the ability to agree and accept the return of an entry as an alternative to providing proof of authorization.

  The primary purpose of these rules is to improve and simplify the overall ACH user experience by: facilitating the adoption of new technologies and channels for the authorization and initiation of ACH payments, providing clarity and increasing consistency around certain ACH authorization processes and reducing certain administrative burdens related to ACH authorizations. Visit www.nacha.org to view the rules in full.