Making Sense of the ACH Rules

Presented by:
John Burnett

The Federal Reserve recently reported that more than two thirds of all U.S. non cash payments are electronic. In a bid to solidify the Automated Clearing Houses role in the payments industry, the National Automated Clearinghouse Association (NACHA) has made significant inroads into the traditionally paper based payments sphere, making check conversions one of the industry's major success stories. Now that billers and retailers have shown themselves ready to adopt check conversion as an efficient and cost-saving method for receiving payment, NACHA last March rolled out yet another form of check conversion the Back Office Conversion (BOC) to provide retailers a less expensive way to employ check conversion technology to squeeze out float and paper check processing costs.

The Federal Reserve updated recently updated its Electronic Fund Transfer regulation (Regulation E) to address some of the concerns voiced by consumers as check conversions become more firmly entrenched among the payment alternatives available. Join BOL Guru John Burnett for "Making Sense of the ACH Rules" to learn about

ACH Standard Entry Class codes and what they mean

Corporate vs. Consumer ACH payments

The use of authorizations for recurring ACH payments

• Cancelling authorizations

Use of the ACH for check conversions at point of purchase, in the "back office," and by lockbox operations

NACHA-required notices for check conversions

The Federal Reserve's Regulation E requirements for check conversion disclosures

• The effect on financial institutions as deployers of this technology

Stopping payment on ACH transactions

• Three day notice (NACHA and Reg. E)
• In time for action by the bank

Stops on paper transactions converted to ACH

Returning ACH transactions

• Unauthorized
• Payment stopped
• Missed stops on check conversion transactions
• Which return code to use

Need for WSUPP

Time limits for returns

ACH warranties

Corporate transactions in consumer accounts

• NACHA rule protects the bank

Keeping current on rules changes

About the speaker: John Burnett
John Burnett is a 1979 alumnus of the ABA National Compliance School, and served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA’s Stonier Graduate School of Banking. He is also a graduate of the BAI’s and the Massachusetts Banker Association’s Schools of Banking. He joined Cape Cod Bank and Trust Company in 1971 and became its Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT’s Board of Directors, as well as Clerk of the bank’s holding company. After leaving the bank in 2004, John joined Glia Group, Inc. and became a part of the BOL Team in June, 2004. Mr. Burnett was a member and former chair of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA’s Truth in Savings Task Force, and has served on several ABA and Massachusetts Bankers seminar panels.

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About the speaker:

John Burnett
John Burnett is a 1979 alumnus of the ABA National Compliance School, and has served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA’s Stonier Graduate School of Banking. He is also a graduate of the BAI’s and the Massachusetts Banker Association’s Schools of Banking.

He joined Cape Cod Bank and Trust Company in 1971 and assumed his role as Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT’s Board of Directors, as well as Clerk of the bank’s holding company. After leaving the bank in 2004, John joined Glia Group, Inc. and became a part of the BOL Team in June, 2004.

• Complete presentation (including slides and audio)
• Written Materials
• Follow-up Q & A

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