May 16, 2006
The National Association of Attorneys General (NAAG) has advised Nacha of a problem with violations of federal and state laws governing the sale of tobacco products by Internet tobacco retailers. Internet tobacco retailers use electronic payment systems, including the ACH Network, for such sales. As a result, NAAG has requested Nacha’s assistance in their efforts to stop the illegal sale of tobacco over the Internet, asking that the Nacha membership refuse to provide electronic payment processing services to Internet tobacco retailers engaged in illegal sales.
March 17, 2006
This Operations Bulletin has been issued in accordance with Section 13.3 (Interpretative Rules) of the Nacha Operating Rules to clarify the Rules with respect to the exclusive use of the POP format for the electronic conversion of checks accepted at the point of purchase.
February 17, 2006
Recently, Nacha has received an increasing number of questions and complaints concerning a particular business practice involving attempts to obtain authorization of debit entries to business accounts. In these situations, an Originator mails a check to a business (typically to the business’ lockbox) where that check contains language printed on the back that states that by endorsing or depositing the check, the Receiver agrees to and has authorized the origination of ACH debit entries to its account. The check is processed and deposited into the Receiver’s account, and ACH debit entries
January 13, 2006
Please be advised that Nacha’s Voting Membership has approved an amendment to the Nacha Operating Rules. This amendment, which became effective on December 16, 2005, modified the Nacha Operating Rules to explicitly state that Nacha’s Board of Directors has the authority to issue binding, written interpretations of the Rules. Background
October 20, 2005
Over the last several months, Nacha has received a number of questions concerning the appropriate use of Return Reason Codes R08 (Payment Stopped) versus R38 (Stop Payment on Source Document) and R52 (Stop Payment on Item) for the return of Accounts Receivable (ARC) and Re-presented Check (RCK) entries, respectively, when a stop payment order is involved.
September 25, 2005
In 2000, Nacha implemented a set of rules and formatting requirements related to Point-of- Purchase (POP) entries – transactions designed specifically for use by Originators as a means to convert, at the point of purchase, a consumer’s check to an ACH debit for an in-person purchase of goods or services. The POP application established the legal framework and formatting requirements needed to protect ACH participants with respect to check conversion transactions initiated at the point of purchase and requires, among other obligations, the explicit authorization of the consumer and the speci
September 15, 2005
ACTION TAKEN: The ACH Rules Enforcement Panel has decided that it will not impose penalties on financial institutions that originate XCK entries to collect checks currently defined as ineligible under Subsection 2.7.2 of the Nacha Operating Rules. EFFECTIVE DATES: This policy is effective for XCK entries originated from September 1 through October 31, 2005 in the area impacted by Hurricane Katrina.
September 6, 2005
In the aftermath of Hurricane Katrina, financial institutions are likely to receive numerous inquiries from their account holders regarding the processing of ACH debit entries to their accounts. It is anticipated that many of these questions may relate to the consumer’s ability to stop these debits to their accounts so that their funds can be available to them for more immediate needs.
August 5, 2003
On March 15, 2002 Nacha Operating Rules became effective for Accounts Receivable Entries (ARC). Under the ARC rules, a consumer check remitted to an accounts receivable location, such as a lockbox or dropbox, can be converted into an ACH debit when prior notice has been provided to the consumer. The ARC application is used for consumer bill payments.
March 28, 2003
On a regular basis, Nacha receives questions from ACH participants concerning an ODFI’s potential liability for a breach of its warranties under the Nacha Operating Rules. Specifically, the question relates to whether an ODFI’s liability for a breach of its warranty that an ACH entry is authorized is limited to the period of time in which an RDFI has the right to return the entry through the ACH Network (i.e., sixty days after the settlement date of the entry for consumer transactions and two days after the settlement date of the entry for non-consumer transactions) or whether this
September 19, 2002
Nacha has recently become aware of an increasing number of fraudulent transactions being made over the ACH Network using the Telephone-Initiated Entry (TEL) application. The TEL application became effective in September 2001 as a means to provide a more streamlined method by which consumers could authorize one-time ACH debit entries. This Operations Bulletin is intended to identify specific risk management concerns related to the origination of TEL entries and to clarify key rules obligations with respect to proper authorization and use of the TEL application. ODFIs are strongly encouraged