NACHA addresses excessive transaction return levels

NACHA has said the amendment to its Operating Rules will help to reduce the number of ACH transactions that result in exceptions and returns.

“This Rule amendment is part of NACHA’s ongoing efforts to maintain and improve the strength and quality of the ACH Network for the consumers, governments, businesses and financial institutions that move their money via ACH,” Janet O. Estep, president and CEO of NACHA has unveiled. “The Rule demonstrates the value of the financial industry coming together through private-sector rule-making to address practices that may result in harm to consumers.”

The ACH Network Risk and Enforcement Rule institute a few changes, all of which are geared toward reducing disproportionate levels of exceptions and returns. These instances not only impose additional costs on Receiving Depository Financial Institutions (RDFIs) but also have the potential to impact their customers as well.

With the new rule in place, NACHA said it will have an increased ability to identify and enforce any “outlier” Originators that may be the cause of exceptions and returns as well as enforce rules related to unauthorized transactions.

Financial institutions can also expect to see a lowered existing return threshold, from 1.0 percent to 0.5%, for unauthorized transactions.