One Cash Letter, One Credit--It's Simple

First Fed Report Goes Online

Falling Prices Make Now a Good Time for ACH Origination

ACH Rule Changes in Store Before Year 2000

Have You Seen the "D" Lately?

ReserveNotes

BranchingOut
New Staff Ready to Serve You

It's Time to Enroll in FCA

ACH Rule Changes in Store Before Year 2000

In its continuous pursuit of making the ACH network more efficient, NACHA recently implemented several amendments to the ACH Operating Rules.

NACHA postponed several changes planned for September--including the much talked about Represented Check Entry (RCK) Standard Entry Class (SEC) code and two new SEC codes for cross-border payments--until next September so the industry can focus on Y2K preparations.

Two other rule amendments still will go into effect before the advent of the new millennium.

Audit Crackdown

Third-party service providers, in addition to financial institutions, soon will be required to audit ACH rules compliance every year (instead of every three years) and retain proof of the audit. The implementation date is Dec. 17, which means the first audit must be completed before Dec. 1, 2000.

PPD Broadens Until POP

An interim rule, effective Sept. 17 through Sept. 14, 2000, expands the definition of the Preauthorized Payment and Deposit (PPD) SEC code by enabling an originator to initiate a one-time ACH debit to a receiver's account for purchases at the point of sale, based on a written authorization.

The check serves as the source document for routing and account number information. The originator will void the check and return it to the consumer at the point of sale. At the end of the pilot next September, a new Point of Purchase (POP) SEC code will become active.

In addition to these amendments, the Financial Management Service recently revised The Green Book to more clearly define how the federal government participates in the ACH.

For financial institutions, these revisions will help reduce the administrative burden of processing federal ACH entries, promote a better understanding of the government reclamation process and actions required of institutions to limit their liability, and provide greater clarity on the roles, responsibilities and liabilities associated with government ACH transactions.

For more information on any of these changes, contact Cheryl McCarthy in St. Louis at (314) 444-8459.

 

Visit these web sites for updates on NACHA rule changes. NACHA: www.nacha.org MPX: www.mpx.org SFE: www.sfe.org

 

back to top