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NACHA Rule Making Process

Here you will find the status of the NACHA rule making process and pilot programs.

This page is current as of February 2007.

Recent Activities

February 2007 - Request for Comment - Network Enforcement Rule. Comments due by April 23, 2007. See the RFC. July/August 2005 - RWG #22, Cross-Border issues anticipates distributing a Request For Comment on modifications to the cross-border format. July 2005 - RWG #56, Automated Request For Payment-Related Documents anticipates having their first conference call. July 2005 - RWGs #2 & #41 will be reviewing the business case relating to modifying the ARC and POP applications to identify business checks ineligible for conversion. June 22, 2005 - The comment period for the Request For Comment from RWG #52, Operational Efficiency Issues closed. The RWG will meet in July to review the responses. June 21, 2005 - RWG #54, Risk Management Issues, held a conference call to begin reviewing the risk management white paper. June 9, 2005 - The ballot period closed for Ref. #1-05, Network Return Entry Fees. The ballot did not achieve the necessary two-thirds of the voting power cast on the amendment in order to become effective. NACHA's Board of Directors will be discussing this issue at their August meeting. June 6, 2005 - RWG #53 issued a Request For Comment on Returns Issues. The comment period closes on July 21, 2005. June 6, 2005 - RWG #57, Back Office Conversion has been meeting to begin to develop a business case for this application.

Rules Summaries

Rules Work Group #2: Check Truncation Applications Step: Solution Creation - Identification of Business Checks Ineligible for Conversion Sponsor: Electronic Check Council (J.P. McClernon, AAP, JP Morgan Chase) Rules Work Group #4: Commercial Automated Enrollment Step: Solution Creation (Anticipated Request For Information - Summer 2005) Sponsor: T. Rowe Price (Nolan North) Rules Work Group #11: Electronic Authorization Step: Solution Creation - Authorization Requirements for POP and Service Fees Related to RCK Entries Sponsor: Electronic Check Council (Cris Gerard, AAP, Citibank and Kerry Sellen, AAP, Telecheck) Rules Work Group #22: Cross -Border Issues Step: Solution Creation (Anticipated Request For Comment - July/August 2005) Sponsor: Federal Reserve (Elizabeth McQuerry) and US Bank (Nadia Kozak) Rules Work Group #32: Internet Security Issues Step: Data Security Audit Requirements - Research & Development Sponsor: The Internet Council (Fred Laing, AAP, UMACHA and Mack Hicks, Bank of America) Rules Work Group #33: Reversal Issues Step: Research & Development Sponsor: UMACHA (Fred Laing, AAP) Rules Work Group #35: Enforcement Issues Step: Solution Creation (Ballot Ref. #1-05, Network Return Entry Fee - Ballot period closed June 9, 2005, ballot was not approved) Sponsors: Commerce Bank (Rick Burke) and WACHA (Mary Gilmeister, AAP) Rules Work Group #41: Electronic Check Conversion Applications Sponsor: Steve Schutze, Foreword Financial Consulting Rules Work Group #52: Operational Efficiency Issues Step: Solution Creation (Request For Comment - comment period closed June 22, 2005) Sponsors: Sandy Spring Bank (Tina Giorgio, AAP), and UMACHA (Fred Laing, AAP) Rules Work Group #53: Return Issues Step: Dishonor and Contested Dishonor Return Codes - Solution Creation (Request For Comment - comment deadline July 21, 2005) Sponsors: SunTrust Banks (Ruth Brown, AAP) and WACHA (Mary Gilmeister, AAP) Rules Work Group #54: Risk Management Issues Step: Solution Creation Sponsors: SWACHA (Dennis Simmons, AAP) and JPMorgan Chase (J.P. McClernon, AAP) Rules Work Group #55: Deposited & Represented Truncated Check Debit Entries Step: Research & Development Sponsor: The Electronic Check Council (Dick Williams, Washington Mutual) Rules Work Group #56: Written Statements Under Penalty of Perjury and Automated Requests for Payment-Related Documentation Step: Research & Development Sponsors: Joe Alexander (Electronic Payments Network) and Norman Robinson (EastPay) Rules Work Group #57: Back Office Conversion Step: Research & Development Sponsors: Electronic Check Council (Beth Cronenweth, Fifth Third Bank and Sam Robb, Mellon Bank)

Pilot Programs

Deposited and Re-presented Truncated Check Debit Entries NACHA's Electronic Check Council is conducting a pilot to test depositor, financial institution and check writer acceptance of the presentment of deposited and returned checks as ACH entries. The pilot is open to any eligible financial institution and deposited and returned checks are drawn only on accounts of pilot participants. The pilot is testing a method for depository financial institutions to expedite and control check re-presentment by electronically re-presenting items that have been returned unpaid for insufficient funds or uncollected funds. The Electronic Check Council began the pilot in November 2002 for a one-year period, received approval for extending the pilot for a second year, and has since received approval for an additional year. Five financial institutions are exchanging entries. Participants report that, overall, 58 percent of items clear upon re-presentment and that check losses are reduced as a result. Electronic Bill Information Delivery System (EBIDS) NACHA's Council for Electronic Billing and Payment (CEBP) has received approval to conduct the Electronic Billing Information Delivery Service (EBIDS) pilot. The purpose of this voluntary pilot is to develop a business case for using the ACH as a compatible consumer bill delivery channel that can complement other methods for populating bill presentment platforms at financial institutions. EBIDS will use existing ACH processes for payment and remittance. Pilot participants will define and corroborate stakeholder requirements, design product features, and test the economic model during the pilot period.