Effective March 19, 2021
If your organization allows consumers to make purchases or payments via the internet or mobile devices and uses ACH WEB debits to withdraw payments from their checking accounts, this rule applies to you. This rule is intended to help prevent fraud on the ACH Network and protect financial institutions from posting fraudulent or incorrect unauthorized payments. Merchants and billers (and their processing partners) are in the best position to detect and prevent fraud related to payments they are initiating.
Rules Change. Stay Current and Compliant.
There is a bite to Nacha Rule violations. Nacha enforces their rules through a system of warnings and fines. In extreme cases, offending organizations could even face suspension of originating entries. Rules change on an annual basis and there is a change effective this year that will affect all United States financial institutions. Continue reading to learn about the bite of non-compliance, how to stay on top of industry changes, and what your organization needs to do to comply with the Contact Registry rule.
Federal Reserve Banks Pause Fedwire® Funds Service’s Migration to ISO® 20022 Messages to Assess Industry Request
Based on a recent industry request to revisit the ISO 20022 migration strategy, the Federal Reserve Banks announced a pause in their previously announced plans for a three-phased migration to the ISO 20022 messaging standard for the Fedwire Funds Service. As a result, Phase 1 will not be implemented in November 2020. The Federal Reserve Banks will provide an update regarding their implementation plans once the assessment is complete.
The payments industry continues to evolve with improvements to network functionality and the introduction of entirely new payment rails. Trends from around the world indicate that momentum for faster payments continues to increase and expand geographically. How are financial institutions in the U.S. responding to this global trend? This study, commissioned by the Center for Payments, surveyed payments association members from across the United States to examine how financial institutions and others are planning or implementing a payments strategy and adopting new technologies, like faster payments solutions. A deeper dive into the survey responses demonstrated differences in financial institutions of various asset sizes.