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.