October 02, 2020

Nacha Adopts Rules for the Ongoing Modernization of ACH Payments

ACH Rules

Nacha has approved eight new amendments to the Nacha Operating Rules governing the use of ACH payments. Many of the changes reflect a long-term strategy to modernize the ACH system, both through infrastructure improvements such as Same Day ACH; and making ACH payments easier to use for the country’s consumers, businesses and other organizations.

Most significantly, two of the rules provide businesses, financial institutions, payment providers and technology companies with a framework for authorizing consumer ACH payments that can be applied to the myriad of new channels and technologies that consumers are adopting to interact and transact with businesses.

“Nacha and our members work to evolve the ACH ecosystem as new business needs arise and as technology changes,” said Michael Herd, Senior Vice President, ACH Network Administration. “These new rules should be useful to the many thousands of businesses and other organizations that enable consumers to conduct transactions using new technologies and channels.”  

Other components of the new rules include reducing several administrative requirements associated with obligations to obtain or provide payment-related documentation, and adopting a specific timeline for financial institutions to handle claims of unauthorized payments.  Lastly, the new rules define and make explicit the scenarios in which reversing ACH payments are not valid, and enhance Nacha’s authority to enforce the rules for egregious violations.

“The modern ACH Network is thriving,” said Herd. “As these new rules take effect throughout 2021, along with the expansion of Same Day ACH, the ACH Network will remain a compelling and effective payment choice for consumers and businesses.”

Learn More

Nacha and the Payments Associations are dedicated to ensuring participants are prepared and educated to implement new rules. To stay informed, sign up for Nacha’s Rules News at nacha.org/RulesNews.