EFFECTIVE MARCH 19, 2010
Authorization and Returns
Revises the Rules to refine the requirements for obtaining a Receiverís authorization for an ACH payment and modify the processes by which RDFIs handle Receiversí claims of unauthorized debits. Specifically, this amendment (1) clarifies the requirements for authorization of ACH entries, adopting the language of Regulation E that an authorization must be ďclear and readily understandable;Ē (2) clarifies that a purported authorization that is not clear and readily understandable is not considered a valid authorization; (3) eliminates the requirement that a Receiverís written statement regarding an unauthorized debit be made under penalty of perjury; (4) establishes minimum information requirements for and revises timing requirements related to the written statement; and (5) expands the use of R39 for duplicate check/check conversion payments.
Stop Payments and Regulation E
Revises specific language within the Rules regarding the application and expiration of a stop payment order. As the Federal Reserve Boardís Staff Interpretation of Regulation E has changed over time, there has been a divergence between the Rules and Reg E with respect to the intent of, and processing requirements for, stop payment orders on ACH debits. These differences have become significant enough to result in the potential for RDFIs to have difficulty reconciling their obligations under both the Rules and Reg E. This amendment re-aligns the Rules with the requirements of the Federal Reserve Boardís Regulation E.
EFFECTIVE JUNE 18, 2010
Direct Access Registration
Modifies the Rules to require (1) ODFIs to register their Direct Access status with NACHA; (2) ODFIs with Direct Access debit origination relationships to provide NACHA with specific information about each Originator or third-party with such a relationship; and (3) an ODFIís board, committee of the board, or the boardís designee to approve a Direct Access Debit Participant prior to the ODFI originating ACH debit entries for the Originator or third-party.
Risk Management and Assessment
Updates the Rules to codify additional risk management practices regarding (1) the performance of due diligence with respect to Originators and Third-Party Senders; (2) the assessment of the nature of the Originatorís or Third-Party Senderís ACH activity and the risks it presents; and (3) the establishment of procedures to monitor an Originatorís or a Third-Party Senderís origination and return activity, and to enforce exposure limits and restrictions on the types of ACH transactions that may be originated.
No, I didn't lose my mind. It got scared and ran away.