Third parties are an important partner in the ACH Network, providing access to millions of Originators. To ensure they have the latest information, Rules updates, and risk management guidance, Nacha just released the fourth edition of “Third-Party Senders and the ACH Network.” A valuable resource for Originating Depository Financial Institutions (ODFIs) and third parties, this publication is now available in the Nacha Store.  

Jordan Bennett, Senior Director of ACH Network Risk Management at Nacha, and Danita Tyrrell, Senior Director of ACH Network Rules Development & Technical Support at Nacha, are experts in the Nacha Operating Rules and ACH risk management and were instrumental in writing this year’s update. They joined Nacha’s Payments Smartcast to offer background for the publication and what readers can expect in the latest edition. 

“Third-Party Senders and the ACH Network” serves “as your honors class,” according to Danita. She explained that as “Third-Party Senders have evolved in the types of services they provided over time, the Rules and guidelines have evolved as well.” 

The latest edition updates roles and responsibilities for third parties and defines the situations when multiple Third-Party Senders are in the ACH transaction flow. This edition gives readers refreshed and added scenarios for third parties as well as “added information on agreements that Third-Party Senders have with their other business partners as well as the ODFI,” according to Danita.

It is important that as third parties "take on some of the obligations of a financial institution that they perform those obligations” as if they are a financial institution, said Jordan. This edition gives tips and examples to third parties on managing originators and risk.

New in this edition are scenarios for nested third parties. “Financial institutions need to manage their Third-Party Sender, and they need to manage any downstream Third-Party Senders as well,” Jordan stressed.

“Third-Party Senders and the ACH Network” compliments Nacha Certified, which pulls in all the rules, laws and regulations of being a third-party sender and helps these organizations review and strengthen their risk management programs. According to Jordan, this publication is a tool for third parties on how to meet the requirements of Nacha Certified.