ACH 2011 Rule Changes

The National Automated Clearing House Association (NACHA) has announced the following changes effective in 2011:

  • Elimination of opt-out requirements for Accounts Receivable Conversion (ARC): Effective March 18, 2011 the lockbox payment processing for Accounts Receivable Conversion (ARC) entries is simplified. NACHA will no longer require that billers have procedures to allow consumers and small business payers to opt out of check conversion to automated clearing house (ACH). Originators may choose to eliminate the opt out, thus reducing customer service expenses and the disclosure requirements on remittance documents.
  • Collection of return fees: Effective September 16, 2011 this change establishes the authorization and identification requirements for ACH debits used to collect return fees for certain checks and ACH debits that have been returned for insufficient or uncollected funds. The new rule addresses when return fees can be assessed under NACHA Rules; authorization requirements; timing of assessing fees; number of fees that can be assessed and other aspects.
  • Recurring TEL transactions: Effective September 16, 2011, this rule is being expanded to allow greater use of the TEL SEC code and provide additional payment options for originators and receivers. Prior to September 16, 2011 only a one-time ACH can be made with a phone authorization. This change will allow recurring payments to be collected via ACH, at a lower cost to the originator. Note: This rule change is for existing client relationships or consumer-initiated phone calls and is not allowed for outbound telemarketing efforts.
  • For additional information on changes to NACHA Operating Rules, visit the NACHA Web site. Details are available under "Recent & Upcoming Amendments" under the "ACH Rules" section.


Copyright © 2014 JPMorgan Chase & Co. All rights reserved.