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Changes On The Horizon For The Nacha Rules. Is Your Credit Union Ready?

Recently implemented and upcoming ACH Network rules impact compliance for all financial institutions including credit unions. Staying on top of ACH compliance in 2023 is important for all ACH participants processing debits and credits.

Along with death, taxes, and a mediocre season for the Knicks, add this to the inevitabilities of life: the Nacha operating rules are going to change.

How certain is that last one? There’s already a change on tap for next year, when phase two of the Micro-Entry Rule is implemented.

Effective March 17, 2023, micro-entry originators will be required to use commercially reasonable fraud detection, including volume monitoring. That follows phase one of the rule, which took effect earlier this year, defining a micro-entry and standardizing the formatting.

In fact, 2022 was a busy year for Nacha rules changes. Along with the first phase of the Micro-Entry Rule, these rules changes were implemented this year:

  • In March, the per-entry limit for same-day ACH was increased from $100,000 to $1 million.
  • Phase two of Nacha’s Supplementing Data Security Rule was implemented in June, requiring that account information be rendered unreadable when stored electronically. While phase one in 2021 applied to organizations originating at least 6 million ACH payments annually, phase two extended coverage to organizations with at least 2 million ACH payments originated a year.
  • September saw implementation of the Third-Party Sender Roles and Responsibilities Rule. It requires originating depository financial institutions (ODFIs) to go to Nacha’s Risk Management Portal to identify which third-party senders do and do not allow nested third-party sender origination relationships.

Your credit union is likely making great use of the ACH network for members small and large. It’s crucial that you to stay up to date on—and in compliance with—the Nacha rules.

What we’ve done here is just briefly summarize what’s going on. The best way to keep up with the ever-changing Nacha rules is to have the latest edition at your fingertips.

When you visit the Nacha store you’ll find the 2023 Nacha operating rules and guidelines available in a variety of formats.

Like the print edition? You got it. Want to regain some desk space? Try the online resource or the app.

Need more than one hard copy or online version? We have bundles (though Flo won’t come to your office). Nacha has what works for you.

Nacha rules changes are certainly a certainty. Make sure your credit union stays compliant. And who knows? Maybe the Knicks will go all the way one of these seasons.

To learn more about the Nacha Operating Rules & Guidelines products, please visit our website

This article is sponsored by a recognized solutions provider in the credit union industry. Callahan & Associates does not endorse vendors or the solutions they offer, and the views and opinions offered here might not reflect those of Callahan. If you are interested in contributing an article on CreditUnions.com, please contact the Callahan team at ads@creditunions.com or 1-800-446-7453.
December 5, 2022
CreditUnions.com
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