Nacha Rule Updates

Thoughtware Article Published: Mar 15, 2021
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The pandemic has affected the payment world, changing history and producing record growth in 2020 for a nationwide shift to electronic payments. Not only has the volume of electronic payments increased, but the value has as well. Whether you’re paying for your pizza or your mortgage electronically, you’re part of this payment increase. As always, change comes with updates, increased regulation awareness, and improvements on what used to work. Below are the National Automated Clearing House Association (Nacha ) rule updates that are coming soon, broken out by key dates, provided directly from Nacha.
 
WEB Debit Account Validation Rule: Effective March 19, 2021 

The WEB Debit Account Validation Rule will take effect March 19, 2021. The rule was originally approved by Nacha members in November 2018 to become effective January 1, 2020. 

Expanding Same-Day ACH: Effective March 19, 2021

This new rule expands access to same-day Automated Clearing House (ACH) payments by allowing same-day ACH transactions to be submitted to the ACH Network for an additional two hours every business day. The new same-day ACH processing window will go into effect on March 19, 2021. The new window allows same-day ACH files to be submitted until 4:45 p.m. Eastern time (1:45 p.m. Pacific time), providing greater access for all originating depository financial institutions (ODFI) and their customers by two hours. 

R11 Returns Subject to Fees: Effective April 1, 2021

Changes to this Nacha operating rule come in two parts. The first part was already implemented, effective April 1, 2020. The second part will be implemented April 1, 2021. As of April 1, 2020, receiving depository financial institutions have been able to use return code R11 for returns that contained an error. This is different than code R10, which is used when a consumer states the debit was unauthorized. Code R11’s purpose is to allow both the originator and receiver to benefit from correcting the error. 

Starting April 1, 2021, the second half of this rule will take effect. R11 returns will become covered by the existing Unauthorized Entry Fee. “The two ACH Operators will implement this part of the Rule, and as with the current fee it will be billed or credited, as appropriate, on the Operators’ monthly statement of charges,” said Debbie Barr, Nacha senior director, ACH Network Rules Process & Communications.

“With part two of this Rule becoming effective in less than two months, now is the time for ODFIs to look at their volume of R11 returns to assess what the impact of the fees will be,” said Barr. “ODFIs should also discuss R11 returns with their Originators and determine ways to reduce these returns.” 

Nacha has more information on these changes at the links below:

For more information, reach out to your BKD Trusted Advisor™ or submit the Contact Us form below.
 

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