NACHA Membership Approves New Rules to Further Improve ACH Network Quality

NACHA Reference: https://www.nacha.org/news/nacha-membership-approves-new-rules-further-improve-ach-network-quality

What does this mean for a PDCflow ACH Merchant?

On August 26, the National Automated Clearing House Association (NACHA) announced its voting membership approved new amendments to the NACHA Operating Rules that will further improve ACH Network quality by reducing the incidence of ACH transactions that result in exceptions and returns.  Information highlighting the key elements of these amendments is outlined below for your review.

• The Rule will reduce the current return rate limit for unauthorized debit entries from 1 percent to 0.5 percent of transactions.  The Unauthorized Return Rate Threshold covers Return Reason Codes R05, R07, R10, R29, and R51
• The Rule has established a return rate limit for administrative or account data error debit entries (for example – closed account and invalid account number) to 3 percent of transactions.  Return Reason Codes R02, R03 and R04
• The Rule has implemented an overall debit entry return rate limit of 15 percent.

These new rule amendments went into effect on September 18, 2015.

If your business goes over any of the above rates, you will be notified by email and will need to address the return rate causes in order to bring the rate back under allowable percentages.

https://www.nacha.org/rules/ach-network-risk-and-enforcement-topics