Meaningful Modernization

Nacha is requesting industry feedback by May 1, 2020, on a set of Rules proposals and other concepts collectively referred to as “Meaningful Modernization.” The overarching purpose of these proposals is to improve and simplify the ACH user-experience by facilitating the adoption of new technologies and channels for the initiation of consumer ACH payments; reducing barriers to use of the ACH; providing flexibility and increasing consistency related to the authorization of consumer ACH payments; and reducing certain administrative burdens on ODFIs and their Originators, and on RDFIs and their consumer customers.

Please provide comments by May 1, 2020, using the survey link below. To enable respondents to gather information from within their organizations, the survey questions are available for download as a Word file. Please review the survey questions prior to beginning your response so that you can gather information and comments from all impacted areas of your organization before responding to the questions. Financial Institutions are encouraged to share this proposal with their Originators and Third-Parties.
https://www.surveymonkey.com/r/LT5Z3ZL

Details

Details

Nacha is issuing for comment five specific proposals to amend the Nacha Rules:

  1. Explicitly define and better enable the use of standing authorizations for consumer ACH debits, thereby better accommodating the use of new technologies and business methods that make use of frequent or occasional interactions between parties to transact;
  2. Define and allow for the use of oral authorization of consumer ACH debits beyond telephone calls, thereby better accommodating the use of new technologies and business methods that make use of verbal interactions and voice technologies;
  3. Clarify and provide greater consistency of authorization standards for consumer ACH debits across payment authorization and initiation channels;
  4. Reduce the administrative burden of providing proof of authorization of a consumer ACH debit; and,
  5. Reduce the administrative burden associated with the Written Statement of Unauthorized Debit by better facilitating the use of electronically and orally provided statements.

 

Nacha also requests the industry to provide information and perspectives on whether the ACH Network should explore the potential to allow authorization dispute resolution for Originators of consumer ACH debits. 

For additional information please review the related materials documents.

Technical

Technical

Please review the Proposed Modifications to the Rules document for Technical Details

Impact

Impact

The RFC proposes that these five areas of changes to the Rules would become effective on July 1, 2021.

Most of the proposals would be optional on the part of the organizations wanting to take advantage of them

  • The use of Standing Authorizations and Oral Authorizations would be optional for ODFIs and Originators to adopt
  • A decision to accept a return in lieu of providing proof of authorization would be optional for ODFIs and their Originators
  • The acceptance of electronically or orally provided WSUDs would be optional for RDFIs

The proposals are anticipated to have little to no impact to RDFIs on the receipt and posting of entries

For additional information please review the related materials documents.

FAQs Section

FAQs Section
Coming soon