The National Automated Clearing House Association (NACHA) works with financial institutions to make billions of transactions safe and secure each year. The following list provides information about rules, payments fraud and related risks. You can learn more on the NACHA website (opens in a new tab).
2018 NACHA Updates
New capabilities of Same Day ACH become effective over phases to allow financial institutions and businesses to acclimate to a faster processing environment, as well as to ease the implementation effort. Beginning March 16, 2018, RDFIs will be mandated to make funds available from same day ACH credits (such as payroll Direct Deposits) to their depositors by 5:00 pm at the RDFI’s local time.
The Rule enables the option for same-day ACH payments through additional ACH Network functionality, without affecting previously available ACH schedules and capabilities:
Originating financial institutions (ODFIs) are able to submit files of same-day ACH payments through two additional clearing windows provided by the ACH Operators (Note: The actual ACH Operator schedules are not determined by the NACHA Operating Rules.):
- A morning submission deadline at 10:30 am ET, with settlement occurring at 1:00 pm
- An afternoon submission deadline at 2:45 pm ET, with settlement occurring at 5:00 pm
Virtually all types of ACH payments, including both credits and debits, are eligible for same-day processing. Only international transactions (IATs) and high-value transactions above $25,000 are not eligible. Eligible transactions account for approximately 99 percent of current ACH Network volume.
All RDFIs are required to receive same-day ACH payments, thereby giving ODFIs and Originators the certainty of being able to send same-day ACH payments to accounts at all RDFIs.
2017 NACHA Updates
This rule requires Originating Depository Financial Institutions (ODFIs) to identify and register their existing Third-Party Sender (TPS) customers by March 18, 2018 and thereafter register their new TPS customers within 30 days. The registration process will promote consistent customer due diligence among all ODFIs, and serve as a tool to support NACHA's continuing efforts to maintain ACH Network quality.
For ODFIs with Third-Party Sender customers, this Rule requires an ODFI to provide basic registration information for each Third-Party Sender:
- The name and principal business location of the Third-Party Sender
- The ODFI's routing number used in ACH transactions originated for the Third-Party Sender
- The Company Identification(s) of the Third-Party Sender
The registration requirement will apply to Third-Party Senders that are the ODFI's direct customers, as well as those other Third-Party Senders that are direct customers of the first Third-Party Sender, otherwise known as "nested" Third-Party Senders.
Here are the Third-Party Senders obligations to the ODFI:
- A Third-Party Sender must disclose to their ODFI the identity of any other Third-Party Sender for which it transmits entries to the ODFI, prior to transmitting entries for the other Third-Party Sender.
- A Third-Party Sender must provide within 2 banking days, upon ODFI's request, the information necessary for the ODFI to complete registration.
- A Third-Party Sender must provide, upon ODFI's request, the following Supplemental Registration information if requested by NACHA regarding a risk event(s):
- Any doing-business-as names, taxpayer identification number(s), and street and website address(es) of the Third-Party Sender
- The name and contact information for the Third-Party Sender's contact person
- Names and titles of the Third-Party Sender's principals
- The approximate number of Originators for which the Third-Party Sender transmits entries
- A statement as to whether the Third-Party Sender transmits debit entries, credit entries or both
2016 NACHA Updates
This Rule is intended to improve ACH Network quality by reducing the incidence of ACH debits that are returned as unauthorized. Under this Rule, an Originating Depository Financial Institution would pay a fee to the Receiving Depository Financial Institution for each ACH debit that is returned due to a reason of unauthorized. This Rule will become effective beginning with applicable return entries that have a settlement date of October 3, 2016.
Unauthorized return reasons include:
- R05 - Unauthorized Consumer Debit
- R07 - Authorization Revoked by Receiver
- R10 - Customer Advises Unauthorized, Improper, Ineligible or part of an Incomplete Transaction
- R29 - Corporate Customer Advises Not Authorized
- R51 - Item Related to Return Check Entry is Ineligible or Improper
This Rule enables same-day processing of ACH payments providing Originators the ability to send a same-day ACH transaction for up to $25,000 to an account at any Receiving Depository Financial Institution (RFDI). All RDFIs would be required to receive same-day ACH payments, thereby giving originators the certainty of being able to send same-day ACH payments to accounts at all RDFIs.
Potential use cases for same-day ACH include:
- Same-day payrolls, supporting businesses’ needs to pay hourly workers, providing flexibility or late and emergency payrolls and missed deadlines and enabling employees to have faster access to their pay in these cases.
- Business-to-business payments, enabling faster settlement of invoice payments between trading partners including remittance information with the payments.
- Expedited bill payments using both ACH credits and debits, enabling consumers to make on-time bill payments on due dates and providing faster crediting for late payments.
- Account-to-account transfers, providing faster crediting for consumers who move money among various accounts they own.
Originating Depository Financial Institutions (ODFIs) would be able to submit files of same-day ACH payments through two new clearing windows provided by the ACH operators:
- A morning submission deadline of 10:30 am ET, with settlement occurring at 1 pm ET.
- An afternoon submission deadline of 3 pm ET, with settlement occurring at 5 pm ET.
This Rule is being implemented in a three-phased approach:
- Credits Only - effective September 23, 2016
- Credits and Debits - effective September 15, 2017
- ACH Credit Funds Availability 5 pm RDFI local time - effective March 16, 2018