Nacha’s ACH Compliance supports the ACH Network by keeping the network strong and safe. In the case of alleged violations of the Nacha Operating Rules and Guidelines, Depository Financial Institutions (DFI) may file a violation or enter into arbitration.
Who Can File?
Only Depository Financial Institutions (DFI) can file an arbitration claim.
Benefits of Arbitration
- Helps resolve disputes using an evaluation and decision process with ACH experts
- Is an expeditious process; arbitration from start to finish takes approximately three months
- Provides an alternative to litigation via the court system, which can be extremely costly and potentially take years for a case to be heard
Who Arbitrates the Case?
Nacha maintains a list of experts in ACH payments including bankers, lawyers and Payments Association members who arbitrate the cases.
Documentation for Filing an Arbitration Claim
To file an arbitration claim, you must be one of the Participating DFIs that is party to the transaction in question, and you will need:
- Identification of parties: Names, addresses and telephone numbers of the complainant and the other party involved in the dispute.
- Summary of facts: A clear description of the alleged violation, including the sequence of events, correspondence, copies of all relevant ACH documents – such as Company/Batch Header Records, Entry Detail Records or Addenda Records, and the section of the Rules that is alleged to have been violated.
- Statement of damages: The dollar amount of damages claimed by the complainant and an explanation of how damages in the amount claimed resulted from the violation(s) asserted.
- Authorization for Submitting a Complaint: Must be signed by an officer of the complainant.
How to File an Arbitration Claim
Arbitration claims and supporting documentation must be submitted to Nacha within two years of the alleged Rules violation. Separate arbitration claims must be filed for disputes involving more than one DFI.
Each claim submitted comes with a $250 filing fee; contact Nacha at Nacha-Ntwrk-Compliance@nacha.org to arrange payment.
Once you have the documentation and have arranged payment, arbitration claims may be submitted via secure email to Nacha-Ntwrk-Compliance@nacha.org, or sent to:
Attn: Compliance Department
2550 Wasser Terrace, Suite 400
Herndon, VA 20171
Once a Claim is Filed
For arbitration, Nacha acts as the liaison between the arbitrator and the DFIs to keep all parties on schedule and collect necessary materials related to the claim. When documentation is received from both sides and there is a full case to review, the arbitrator has a full month to render a decision.
If the arbitrator decides on a monetary award, the responsible party has 14 days to pay. The arbitrator can also find the complainant partially responsible and reduce damages accordingly. Arbitration is binding. All decisions are final and there are no appeals.