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ACH Return Codes Amended

The ACH rules are getting a little easier! A new NACHA rule change, effective March 20, revises return reason codes R14 and R15 to more accurately reflect their purpose.

Both codes identify ACH entries being returned because beneficiaries, account holders or representative payees were unable to accept payments. However, the current descriptions do not clearly illustrate the use of these codes when federal government return entries are processed.

As a result, the codes are being used incorrectly, which increases liability and causes extra work for both RDFIs and originators.

The new descriptions are more specific and will help financial institutions take appropriate action when handling government return entries. A copy of the revised definitions can be found on pages OR 65 and 66 in NACHA's 1998 ACH Rules book. For more information, contact Cheryl Whitworth in St. Louis at (314) 444-8713.

Surviving the Government Mandates

Feeling a little overwhelmed about the recent federal and state mandates requiring the use of electronic payments for vendor payments, food stamp distribution, benefit payments and more? To put it all in perspective, four ACH associations are hosting Surviving the Government Mandates, a conference on April 29 in Kansas City, Mo.

This one-day event will provide you with the knowledge to accurately assess the impact these mandates will have on your organization. Come hear representatives from several organizations, including the Federal Reserve, NACHA and the U.S. Treasury, speak on topics such as EFT 99 and state EBT programs. One conference highlight will be the keynote speaker, Donald V. Hammond, Acting Fiscal Assistant Secretary at the Treasury, who will discuss the status of the final EFT 99 rule and how it will impact you.

If you are interested in registering, contact Mid-America Payment Exchange at (816) 474-5630.

EFT 99 Consumer Pamphlet Available

Looking for something that explains EFT 99 to your customers in "plain" language? The Treasury has a pamphlet entitled What You Need to Know About Your Federal Government Payment that explains in very basic terms what consumers' payment options are and why direct deposit is a good choice. If you would like to order some to give to your customers, contact the U.S. Treasury's Financial Management Service at (202) 874-6540.

Upcoming Training on FedLine for Windows

As the Federal Reserve Bank gets closer to converting its FedLine® software from a DOS-based platform to Windows NT®, we want to help you prepare for the transition. Early this summer, we will offer informational seminars to give you an overview of the new software. Specifically, the seminars will provide a software review and demonstration, as well as outline the latest hardware recommendations.

We will send out invitations to all FedLine customers and their vendors to participate in these seminars. If you currently are not a FedLine user, this is a great opportunity to become acquainted with FedLine and see how it works in a Windows environment. For more information, call the FedLine Help Desk toll free at 1-800-333-0861 and press 1 to speak with an Electronic Access Support representative.