Updates to the NACHA Operating Rules in 2020 and 2021

The NACHA Operating Rules are always changing, and updates have recently been made due to the current COVID-19 situation! There are six ACH Operations Bulletins posted by Nacha in 2020; four of them explain the updates to the Rules due to changes at financial institutions and extensions of effective dates in light of the current situation; and confirming some Rules changes with current effective dates remaining.

In addition, this webinar will provide all the details necessary to help participants in the ACH Network remain compliant with the amendments going into effect for 2020 and 2021, two of which were recently approved for effective dates in 2020 for Unauthorized Returns and the ACH Contact Registry!

In addition, details on additional options and a new re-purposed Return Reason Code when doing ACH Returns for unauthorized Entries. Plus, details on the recent RFC (Request for Comment) on Meaningful Modernization (comments due by May 1, 2020 to Nacha).

• Define amendments to the Rules on Expanding Same Day ACH and how these changes will affect you as a financial institution, including the recent extension on expanding SDA timeframe
• Describe the potential impact on participants in the ACH network with approved changes to other ACH Risk Management topics such as:
  • Supplementing the fraud detection standard for Internet-initiated (WEB) debits
  • Supplementing the existing account information security requirements for large Originators and Third-Parties (effective date has been extended)
• Details on the most recent change to specifying the details of an unauthorized return by adding R11 to further define the “why” or purpose of return entry
• Will include details on the six 2020 Operations Bulletins as issued by NACHA since Jan 2020
• Updates regarding the RFC on Meaningful Modernization (comments were due by May 1, 2020)

Each participant in the ACH Network is required to be in compliance with the Nacha Operating Rules. Operations Bulletins (issued by Nacha) will be discussed in detail (there are six of them for 2020).

This session will provide the details on the recently approved amendments on enhancing Same Day ACH (SDA) by expanding Same Day ACH and raising the dollar limit on SDA transactions (effective in 2020/2021).

Details on the MOST RECENT changes to how an RDFI processes Returns for Unauthorized Entries will be covered with the use of an additional Return Reason Code. Discussion on extending the effective date for the Rules changes with Data Security requirements and details on the changes for the originators on Fraud Detection standards when doing WEB debits.

To remain in compliance with the Rules, participants in the ACH network need to ensure they are up-to-date on recent changes and newly approved amendments to the Rules. Discussion on the Operations Bulletins issued by NACHA will outline the updates to different Rules with our current situation and COVID-19. Included will be the most recent amendment that affects all financial institutions using the ACH Network – you will learn about the impacts of the ACH Contact Registration Rule – begins July 1, 2020!

This session will also cover the newly approved details and any recent updates by NACHA, plus how these changes affect you as a participant in the ACH network, whether you are an ODFI, an RDFI or a TPS or TPSP. Changes such as updated funds availability (effective in 2019), changes to SDA (effective 2020 and 2021), changes to Data Security requirements (effective date has been extended) and how Originators are affected by the Fraud Detection Standards for web debits. In addition, the processing of unauthorized Returns is changing effective April 1, 2020 for phase 1 (phase 2 goes into effect April 1 of 2021) – As the RDFI, are you prepared for the proper use of R10 and R11 (what to do if you’re not ready) and as the ODFI, are you aware of changes to the ODFI Reporting Requirements for R11?

• Financial Institution Professionals (New/Current Operations Staff)
• Third-Party Processors
• Originating Companies
• Banking Operations Managers and Staff
• Compliance and Risk Professionals
• Treasury Management Professionals
• Aspiring and Current AAPs (Accredited ACH Professionals)
• Banking Managers/ Supervisors
• Audit and Compliance Personnel / Risk Managers

Donna K Olheiser, AAP, is the vice president of Education Services and founder of Dynamic Mastership, LLC. Donna is an enthusiastic and energetic Certified Master Trainer with over 14 years’ training experience. She has designed and facilitated over 100 training sessions each year with her expertise being the rules for companies and financial institutions when processing specifically ACH electronic payments, then scheduling the training events to facilitate/deliver the material through a variety of venues (webinars, teleseminars, in-person workshops, including regional and national conferences). Donna has over 24 years of experience in the financial services industry which includes 9 years’ experience as the education service director at a Regional Payments Association (RPA), where she managed and facilitated the entire education program for nearly 800 financial institution members. Prior to that, Ms. Olheiser spent 14 years in various departments with the Federal Reserve Bank of Minneapolis and also holds the Accredited ACH Professional (AAP) designation (achieved in 2004).