With hurricane and storm season here, we want to remind you of the Excused Delay provision of the Nacha Operating Rules (Section 1.5). This is a reminder of the steps that you should take if your ACH entries or returns processing is affected.
We send heartfelt wishes for the safety of everyone in the path of the storms.
Effective March 19, 2021
If your organization allows consumers to make purchases or payments via the internet or mobile devices and uses ACH WEB debits to withdraw payments from their checking accounts, this rule applies to you. This rule is intended to help prevent fraud on the ACH Network and protect financial institutions from posting fraudulent or incorrect unauthorized payments. Merchants and billers (and their processing partners) are in the best position to detect and prevent fraud related to payments they are initiating.
Rules Change. Stay Current and Compliant.
There is a bite to Nacha Rule violations. Nacha enforces their rules through a system of warnings and fines. In extreme cases, offending organizations could even face suspension of originating entries. Rules change on an annual basis and there is a change effective this year that will affect all United States financial institutions. Continue reading to learn about the bite of non-compliance, how to stay on top of industry changes, and what your organization needs to do to comply with the Contact Registry rule.