SUMMARY OF REVISIONS TO THE 2023 NACHA OPERATING RULES
MARCH 17, 2023 EFFECTIVE DATE
Micro-Entries, Phase 2
Approved January 31, 2022
The first phase of the Micro-Entry Rule defined “Micro-Entries” as a term and a type of payment within the Rules. Since its implementation, Originators of Micro-Entries are required to use “ACCTVERIFY” as a standard Company Entry Description and populate the Company Entry Name field with the same or similar name to be used in future entries. Originators using debit entry offsets must send the debit and corresponding credit Micro-Entries simultaneously for settlement at the same time. The rule also requires that the total amount of the credit Micro-Entry(ies) must be equal or greater than the value of the debit Micro-Entry(ies) and that the aggregate total of debits and credits cannot result in a net debit to the Receiver. The use of Micro-Entries requires the receiver to complete a verification process with the Originator prior to the transmission of future entries. Phase 1 became effective on September 16, 2022.
Phase 2 of the Micro-Entries rule built upon its initial implementation by requiring Originators of Micro-Entries to use commercially reasonable fraud detection practices, including the monitoring of forward and return Mico-Entry volumes.
- Article Two, Subsection 2.7.5 (Commercially Reasonable Fraud Detection for Micro-Entries) – New subsection to require Originators to conduct commercially reasonable fraud detection when using Micro-Entries.
GENERAL REMINDERS OF RESPONSIBILITIES WITH CURRENT NACHA RULES FOR ORIGINATORS
NOTIFICATION OF CHANGE (NOC)
Originators must respond to Notifications of Change by making corrections within six banking days of receipt of the NOC information or prior to initiating another entry to the Receiver account, whichever is later. (Note: Special requirements apply to NOCs received in response to prenotification entries and to Single Entries. These are discussed in more detail below.)
NOC received in response to a prenotification entry
- An Originator must make all changes contained within an NOC related to a prenotification entry; however, the Originator timing requirements for action can differ, depending on when the NOC is made available to the ODFI. For a timely NOC (that is, an NOC made available to the Originator ODFI by the ACH Operator by the opening of business on the second banking day following the prenote settlement date), the Originator must make the requested changes before transmitting a live entry to the Receiver account. For an untimely NOC (that is, an NOC made available to the ODFI by the ACH Operator after the opening of business on the second banking day following the prenote settlement date), the Originator must make the requested changes within six banking days of receiving the NOC information from its ODFI or prior to transmitting the next entry, whichever is later
NOC Received in response to a Single Entry
- By definition, a Single Entry is a credit or debit entry based on a Receiver authorization for a one-time transfer of funds to or from the Receiver account. No subsequent entries may be originated unless separately authorized by the Receiver via a new authorization. The NACHA Operating Rules, therefore, allow an Originator discretion in determining whether to make the changes requested in any NOC related to an Entry identifiable as a Single Entry.