HERNDON, Va., Oct. 2, 2020 /PRNewswire/ -- Nacha has approved eight new amendments to the Nacha Operating Rules governing the use of ACH payments. Many of the changes reflect a long-term strategy to modernize the ACH system, both through infrastructure improvements such as Same Day ACH; and making ACH payments easier to use for the country's consumers, businesses and other organizations.
Most significantly, two of the rules provide businesses, financial institutions, payment providers and technology companies with a framework for authorizing consumer ACH payments that can be applied to the myriad of new channels and technologies that consumers are adopting to interact and transact with businesses.
"Nacha and our members work to evolve the ACH ecosystem as new business needs arise and as technology changes," said Michael Herd, Senior Vice President, ACH Network Administration. "These new rules should be useful to the many thousands of businesses and other organizations that enable consumers to conduct transactions using new technologies and channels."
Other components of the new rules include reducing several administrative requirements associated with obligations to obtain or provide payment-related documentation, and adopting a specific timeline for financial institutions to handle claims of unauthorized payments. Lastly, the new rules define and make explicit the scenarios in which reversing ACH payments are not valid; and enhancing Nacha's authority to enforce the rules for egregious violations.
"The modern ACH Network is thriving," said Herd. "As these new rules take effect throughout 2021, along with the expansion of Same Day ACH, the ACH Network will remain a compelling and effective payment choice for consumers and businesses."
Nacha and the Payments Associations are dedicated to ensuring participants are prepared and educated to implement new rules. To stay informed, sign up for Nacha's Rules News at nacha.org/RulesNews.
Nacha is a nonprofit organization that convenes hundreds of diverse organizations to enhance and enable ACH payments and financial data exchange within the U.S. and across geographies. Through the development of rules, standards, governance, education, advocacy, and in support of innovation, Nacha's efforts benefit all stakeholders. Nacha is the steward of the ACH Network, a payment system that universally connects all U.S. bank accounts and facilitates the movement of money and information. In 2019, 24.7 billion payments and nearly $56 trillion in value moved across the ACH Network. Nacha also leads groups focused on API standardization and B2B payment enablement. Visit nacha.org for more information, and connect with us on LinkedIn, Twitter, Facebook and YouTube.
Contact: Heather McElrath