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NEWS RELEASE
NACHA Approves Company Name Identification Rule
Rule will improve ACH
Network quality by reducing unrecognized
transactions
Herndon,
Virginia, February 11, 2008 - The voting
membership of NACHA—The Electronic
Payments Association has approved the Company Name
Identification Rule, an amendment to
the NACHA Operating Rules that will enable
consumers to more readily identify companies and
other parties that are the sources of ACH
transactions.
Specifically, this
rule will require a company to identify itself
within the ACH transaction by the
name that is known and readily recognized by the
consumer.
The Rule also
provides guidance on company identification
requirements for specific types of
ACH transactions, and in cases in which the
originator of the transaction is not the ultimate
payee or payor.
The Rule will take
effect June 20, 2008.
“The Company Name
Identification Rule is a component of NACHA’s
comprehensive risk
management strategy for the ACH Network,” said Roy
DeCicco, managing director, JPMorgan
Chase, and chairman of NACHA’s Risk Management
Advisory Group. “The Rule will improve
ACH Network quality by reducing the number of ACH
payments that are unrecognized by
consumers and that require investigation and
exception handling by their financial institutions.”
NACHA’s most
recent research indicates that problems with the
identification of companies in
ACH transactions happen infrequently. Consumers who
do not recognize transactions, however,
are more likely to contact their financial
institutions, which increases customer service
costs.
NACHA -
The Electronic Payments Association
NACHA—The Electronic Payments Association represents
more than 11,000 member financial
institutions, a network of regional payments
associations, and 585 organizations through its
industry councils. NACHA manages the development,
administration, and governance of the
Automated Clearing House (ACH) Network—an efficient,
reliable, and secure payments system
that facilitates commerce electronically. NACHA
serves its members by promulgating the
NACHA Operating Rules, managing the ACH Network,
promoting the value of ACH payments,
and offering tools and resources to facilitate the
adoption of ACH payments. To learn more, visit
www.nacha.org and
www.electronicpayments.org.
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