B2B Payments

Electronic Payments Association Makes Moves To Improve ACH Network

Two new amendments to NACHA’s operating rules were approved by the Electronics Payments Association, according to Finextra. The amendments are designed to improve the ACH Network quality by decreasing the amount of ACH transactions that result in exceptions and returns.

“These rules show that financial institutions can come together through private-sector rulemaking to address practices that may result in harm to consumers,” NACHA President and CEO Janet O. Estep said. “In developing these rules, NACHA incorporated broad industry feedback and balanced differing perspectives from many parties. The rules represent workable solutions that can be implemented by financial institutions.”

One of the adjusted rules, The “ACH Network Risk and Enforcement” Rule, assists NACHA in finding “outlier” Originators. These entities “may be responsible for the highest, and most disproportionate levels of exceptions and returns, which impose costs on Receiving Depository Financial Institutions (RDFIs) and can impact their customers,” the news source explained.

The second change is to the rule titled “ACH Network Quality.” This rule explains the reasoning for creating an Unauthorized Entry Fee that an Originating Depository Financial Institution (ODFI) must pay to an RDFI for the return of an unauthorized transaction.


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