New Nacha Rules Take Aim at Credit-Push Fraud | Nacha (2024)

FAQs

What is the new Nacha rule in 2024? ›

On March 15, 2024, Nacha members approved(1) a rule that expands the reasons for which an ODFI may request the return of an entry and establishes a new requirement for the RDFI to respond to the ODFI when it receives such a request.

An Originator or ODFI must still transmit a Reversal in such time that it is made available to the RDFI within 5 banking days following the Settlement Date of the Erroneous Entry.

Yes, Nacha rules compliance is required. Nacha rules apply to member financial institutions (FI), including banks and credit unions, and provide guidelines for non-FI (financial institution) Originators, Third-Party Service Providers (TPSPs), Third-Party Senders (TPSs), and other ACH Network participants.

The Nacha account validation rule concerns businesses planning to receive payments from customers through the automated clearing house (ACH) network. These businesses are required to validate first-time payees. This ensures that the account details that were given match the bank account owner.

ACH (Automated Clearing House) is an electronic network for moving money between US bank accounts, while Nacha (The National Automated Clearing House Association) is the governing body that oversees the ACH network and enforces rules and regulations to protect sensitive information.

R11 will be used to return an ACH entry when a receiving financial institution receives a claim from their account holder that the ACH entry has an error such as the wrong date or the incorrect amount.

Under the ACH rules, the customer's bank is obliged to refund the debits without question, as long as the request was received within 60 days from the NACHA transaction date. (In contrast, businesses have only 2 days to request a return.)

Nacha's Rules Enforcement Department by email at Nacha-Ntwrk-Compliance@nacha.org or phone at 703-561-1100. To report a data breach, please contact Nacha at nachariskinvestigations@nacha.org.

Are ACH transfers reported to the IRS? The IRS doesn't count ACH transfers as cash, so they are not reported.

How do I avoid ACH payments? ›

To cancel a recurring ACH payment, you'll need to first contact the company you're paying and inform them that you're revoking their access to your account. You can do this over the phone, or you can write the company stating clearly that you are revoking authorization.

ACH stands for Automated Clearing House and is a means of processing checks faster electronically. If your business accepts ACH payments, you've likely wondered "What does rejected mean?" Just like traditional checks, ACH payments can be rejected due to incorrect information or insufficient funds.

In March 2022, the Same Day ACH per-payment limit increased from $100,000 to $1 million.

It is important to note that a financial institution is not required to manually verify that the name on the ACH entry matches the name on the account at the time the payment is posted.

This Nacha Rule established an inquiry process and evaluation points if an Originator or Third-Party Sender exceeds an administrative return rate level of 3.0% and/or an overall return rate level of 15.0%. Make sure you are monitoring accurately by using one of these return rate calculations.

Answer: Submitting a return of an ACH debit that is more than 60 days old (measured from its Settlement Date) is not permitted by Nacha Rules, and the ODFI has the right to refuse the return and send it back to you using a return code of R68 (Untimely Return).

ACH rules stipulate that when you request an ACH payment from your client's bank account and your payment is rejected due to insufficient or uncollected funds, you can retry the payment two more times. But you have to retry this payment within 180 days from the settlement date of the initial entry.

The Nacha Rule establishes the unauthorized return rate threshold at 0.5%. Make sure you are monitoring accurately by using one of these return rate calculations.

You can use stop payment orders to stop the next scheduled payment, or to prevent all future payments. If it's the latter, you'll need to provide the written order within 14 days of notifying the bank. Once the above has taken place, the ACH payments should no longer take place.