US-based non-profit organisation National Automated Clearing House Association (Nacha) has agreed to adopt eight new amendments to the Nacha Operating Rules, which governs the use of ACH payments.
According to the organisation’s website, “the Nacha Operating Rules are the foundation for every ACH payment.
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“By defining the roles and responsibilities of financial institutions and establishing clear guidelines for each network participant, the rules ensure that millions of payments occur smoothly and easily each day.”
Several changes to the rules are in line with the organisation’s long-term strategy to modernise the ACH payment system.
It will do this through infrastructure improvements like Same Day ACH as well as making ACH payments easier to use for consumers, businesses, and other organisations.
Two rules provide a framework to businesses, financial institutions, payment providers, and technology firms for authorising consumer ACH payments.
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By GlobalDataThese rules are applicable to new channels and technologies that consumers adopt.
Other changes include reducing several administrative requirements related to documentation and adopting a specific timeline to manage unauthorised payments claims.
The new rules also define the scenarios which are invalid for ACH payment reversals and boost Nacha’s authority to implement the rules against violations.
ACH Network Administration SVP Michael Herd said: “These new rules should be useful to the many thousands of businesses and other organisations that enable consumers to conduct transactions using new technologies and channels.
“The modern ACH Network is thriving. 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.”
Founded in 1974, Nacha brings together hundreds of diverse organisations to enable ACH payments and financial data exchange within the US as well as overseas.
Last month, Nacha added payments giant Visa to the list of partners that are testing the new payment-information exchange platform Phixius.
