NACHA Operating Rules Updates

Below are selected Operating Rules changes published by NACHA - The Electronic Payments Association®. The effective date for each Rule update is provided along with a summary of the change.

The complete set of annual ACH Operating Rules and Guidelines - Corporate Edition is available for purchase from NACHA at https://www.NACHA.org. Purchase of this printed material also allows online access to the Rules. Alternatively, you may visit http://www.achrulesonline.org/ to view options for free and paid online-only access.

If you have questions, please feel free to contact your local Treasury Management Officer or Treasury Management Services Support at 1-866-475-7262.

Effective October 3, 2016, pertaining to Entries originated on or after August 1, 2016.

Improving ACH Network Quality - UNAUTHORIZED ENTRY FEE

This Rule's intent is to improve ACH network quality by reducing the incidence of unauthorized ACH debit Entry returns. Under this Rule, ODFIs will be charged a fee for each ACH debit that is returned unauthorized. Unauthorized return reason codes include:

  • R05 – Unauthorized Debit to a Consumer Account using a Corporate SEC code
  • R07 – Authorization revoked by Customer
  • R10 – Customer advises Unauthorized, Improper Ineligible, or part of an Incomplete Transaction
  • R29 – Corporate Customer advises Not Authorized
  • R51 – Item related to RCK Entry is Ineligible or RCK Entry is improper. (RCK's are returned checks converted to ACH.)

Important Notes

In October 2015, a new NACHA Rule went into effect that reduced the return rate threshold for unauthorized debit Entries from 1.0 percent to 0.5 percent of the total debit Entries originated. The October 2016 Rule outlined above imposes fees for those transactions.

Originators should implement systems, tools and processes to reduce unauthorized debit returns to avoid NACHA Rules violations and associated fees.

Effective in three phases beginning September 23, 2016.

Same Day ACH

This Rule provides Originating Depository Financial Institutions (ODFIs) the option to allow customers to initiate Same Day settlement of domestic ACH Entries of $25,000 or less. This Rule is being implemented in three phases.

Phase Effective Date Summary
I September 23, 2016

Permits Same Day origination of credit Entries. Receiving Depository Financial Institutions (RDFIs) must credit receivers by the end of the processing day.

Also allows RDFIs to send Notifications of Change (NOCs) and returns on a Same Day basis, potentially allowing originators to receive information faster.

II September 15, 2017

Permits Same Day origination of debit Entries. RDFIs must debit receiver accounts by the end of the processing day.

III March 16, 2018

Requires RDFIs to make funds from Same Day ACH Entries available by 5 p.m. local time.