Risk Management

NACHA Adds 9K Third-Party Senders, Expands ACH Payments

NACHA, the electronic payments association, announced that banks and credit unions have registered 9,403 third-party senders as of the March 1, 2018 deadline.

In a press release, NACHA said the rule, which took effect on Sept. 29, 2017, calls for financial institutions that originate ACH payments to register their third-party sender customers through the NACHA Risk Management Portal. NACHA defines a third-party sender as an intermediary between the party that is initiating an ACH payment and the bank or credit union that submits the payment into the ACH network.

“Third-party senders are important participants in expanding access to ACH payments,” said Jane Larimer, chief operating officer and general counsel at NACHA. “The positive response by banks and credit unions in registering more than 9,000 third-party senders demonstrates their continued commitment to ACH quality.”

According to NACHA, under the third-party sender registration rule, banks and credit unions that originate ACH payments have to provide a statement to NACHA of whether it has third-party sender customers. If they do, they must provide basic information, including the name and location of the third-party senders, for registration purposes.

With the passing of the initial deadline, NACHA said it will validate the industry’s compliance with the rule. Banks and credit unions that haven’t complied can complete their registrations prior to any additional action by NACHA to enforce the rule, according to the press release.

NACHA said that in addition to registering third-party sender customers, financial institutions can also use the Risk Management Portal to sign up to participate in two optional services: the Terminated Originator Database and the Emergency Financial Institution Contact Database. The Terminated Originator Database lets banks and credit unions add and search for originators that have been terminated for cause, while the Emergency Financial Institution Contact Database can be used to find contact information for key bank and credit union personnel responsible for response activity in the event of a risk emergency.

NACHA said that to date, more than 825 financial institutions have signed up for the Terminated Originator Database and more than 1,176 financial institutions have elected to participate in the Emergency Financial Institution Contact Database.


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