2015 ACH Changes to Prepare for
2015 ACH Changes to Prepare for: Returns and Monitoring
There are just a few changes in the ACH processing environment for 2015. September 18th ODFIs will need to alter existing procedures for monitoring ACH returns on their originators. If you have not already performed your 2015 Originator update, these three points would be items to consider as NACHA rules aim to increase ACH entry reliability.
- Reduction of the Unauthorized Return Rate from 1.0% to 0.5% – ODFIs should already be monitoring originator returns so that they do not exceed 1.0% of originations (R05, R07, R10, R29, and R51). The new rule would be to ensure originators do not exceed 0.5% of originations. Originators could be assessed additional costs to reduce their return rate, per NACHA.
- Monitoring Administrative Return Rates at 3.0% and Overall Debit Entry Return Rates at 15.0% – ODFIs should begin monitoring administrative returns (R02, R03, and R04) to ensure they stay below 3.0%. Although not a violation of NACHA, this will be a tool for finding potential poor origination practices. In addition, overall debit entries (less RCKs) should be monitored in the same fashion at 15.0%.
- Reinitiated Entries – Changes have been made to the rules pertaining to reinitiated entries to help minimize the number of returned reinitiated entries. ODFIs are now required to include the description “RETRY PYMT” in the Company Entry Description field to identify entries that are allowable under the Rule.
In addition to the changes discussed above, below are some additional changes that were imposed this year.
- 3/20/2015 – Dishonored and Contested Dishonored Returns. This change implemented new return reason codes for Return of Erroneous or Reversing Debit (R62) and Non-Acceptance of R62 Dishonored Return (R77). R62 impact Originators/ODFIs and R77 impact RDFIs.
- 3/20/2015 – Person-to-Person Payments via ACH. This change requires RDFIs to accept credit WEB entries (previously exclusive to debit WEB). Systems on both ODFIs/Originators and RDFIs may incur additional costs in updating systems to handle and periodic statements to include the necessary addenda information.
- 3/20/2015 – Change Code C04 (Incorrect Individual Name/Receiving Company Name). Due to complications experienced with the Notification of Change (NOC) reason C04, NACHA amended rules to replace the C04 NOC code. When RDFI finds a name mismatch, they should perform one of the following: post the transaction based only on account number, return the transaction as R03 (No Account/Unable to Locate), or communicate directly with the ODFI/Originator.
- 1/20/2015 – Minor changes to NACHA Operating Rules. These changes clarify some of the NACHA Operating Rules in several minor topics.
Please refer to the NACHA website for further rules as they are made final – (https://www.nacha.org/rules/updates).