Recent & Upcoming NACHA Rules Changes

Business Online Banking

The NACHA Operating Rules are the foundation for every ACH payment. These rules ensure that millions of payments occur smoothly and easily each day. Below is a summary of the recent and upcoming changes to the NACHA Operating Rules and Guidelines.
 

Action Needed from You

As an Originator, you must have a process in place to manage and respond to Returns and Notification of Change (NOC) reports related to your Origination activity. These reports are made available to you via TowneBank’s Business Online Banking platform. Once received, appropriate action must be taken to avoid further complications with the delivery of the ACH item(s). Failure to do so may result in delayed or rejected items or even fines.

What is a Notice of Change (NOC)?

An NOC is created by the Receiver's financial institution to notify the Originator (you) that: 

  1. Previously valid information in an ACH entry (Direct Deposit/Direct Payment) is now outdated and needs to be changed. 
  2. Information in an ACH entry (Direct Deposit/Direct Payment) is erroneous and needs to be corrected. 

 Please note:

  • ACH Rules require the Originator to make changes or corrections within three (3) banking days of receiving the information from the Bank or before another entry is sent. 
  • The Receiving Bank warrants that the information they provide within the NOC is correct. 

Managing Returns

You may re-initiate a debit entry up to two times if:

The entry has been returned for insufficient or uncollected funds (Return Reason Codes R01 and R09)

The entry has been returned for stopped payment and reinitiation has been authorized by the Account Holder.

The Bank has taken corrective action to remedy the reason for the return.

New for 2025: Fraud Monitoring by Non-Consumer Originators

  1. Originators must establish and implement processes and procedures designed to identify Entries that are suspected of being authorized under false pretenses.
  2. Originators must regularly review their internal processes and procedures and make updates to address evolving risks
  3. Taking these steps can help to reduce financial loss from unauthorized debits; improve operational efficiency by streamlining fraud detection and resolution; improve network security; and potentially reduce costs associated with purchasing and implementing a vendor-provided fraud system.

Frequently Asked Questions

  • You may re-initiate a debit entry up to two times if:
    1. The entry has been returned for insufficient or uncollected funds (Return Reason Code R01 and R09).
    2. The entry has been returned for stopped payment and reinitiation has been authorized by the Account Holder.
    3. The Bank has taken corrective action to remedy the reason for the return. 
    Please note:
    • A “Stop Payment” return may be re-initiated only if you receive approval from the payee to re-send the item. 
    • It is a violation of NACHA Rules to re-initiate the debit entry if a return is received for any other reason.
  • You may re-initiate a debit entry up to two times if:
    1. The entry has been returned for insufficient or uncollected funds (Return Reason Code R01 and R09).
    2. The entry has been returned for stopped payment and reinitiation has been authorized by the Account Holder.
    3. The Bank has taken corrective action to remedy the reason for the return. 
    Please note:
    • A “Stop Payment” return may be re-initiated only if you receive approval from the payee to re-send the item. 
    • It is a violation of NACHA Rules to re-initiate the debit entry if a return is received for any other reason.
  • Having a process in place to verify requests to change receiver information can protect your company from a loss of funds. Always be sure to verbally verify updates in payment instructions using a contact number you know and trust.

    Your experienced and knowledgeable Treasury team can help you find and implement the right protection solutions for your business. You can access these powerful tools through Business Online Banking. 
  • ACH fraud is unauthorized ACH transactions or the fraudulent transfer of funds or withdrawals through the ACH Network.
  • Yes. Pre-notes can be enabled by Treasury Support, by calling 844-638-6724.

    Looking to complete an ACH transaction? Log in to Business Online Banking from the TowneBank homepage, navigate to the Transfer and Payments tab, and choose an option from the ACH menu.
  • Yes, you must first be set up with an ACH Service Agreement in order to use Same Day ACH services online. For more information, please contact your nearest TowneBank banker.

Your Treasury Team is Here to Help

If you have any questions or concerns, please feel free to contact your local Treasury Management Advisor.

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