NACHA Operating Rules Updates

NACHA Operating Rules Updates

Below are selected Operating Rules changes published by NACHA – The Electronic Payments Association®. The effective date for each Rule update is provided along with a summary of the change.

The complete set of annual ACH Operating Rules and Guidelines – Corporate Edition is available for purchase from NACHA at Purchase of this printed material also allows online access to the Rules. Alternatively, you may visit to view options for free and paid online-only access.

If you have questions, please feel free to contact our Treasury Management Officer, Tamara Spradlin, at 540.278.1726 or our Electronic Banking Team at

Improving ACH Network Quality – Unauthorized Return Fees and Return Rates

This Rule’s intent is to improve ACH network quality by reducing the incidence of unauthorized ACH debit Entry returns. Under this Rule, ODFIs will be charged a fee for each ACH debit that is returned unauthorized. Unauthorized return reason codes include:

• R05 – Unauthorized Debit to a Consumer Account using a Corporate SEC code
• R07 – Authorization revoked by Customer
• R10 – Customer advises Unauthorized, Improper Ineligible, or part of an Incomplete Transaction
• R29 – Corporate Customer advises Not Authorized

In October 2015, a new NACHA Rule went into effect that reduced the return rate threshold for unauthorized debit Entries from 1.0 percent to 0.5 percent of the total debit Entries originated. The October 2016 Rule outlined above imposes fees for those transactions.

Originators should implement systems, tools and processes to reduce unauthorized debit returns to avoid NACHA Rules violations and associated fees.

Same Day ACH

The 2018 edition of the NACHA Operating Rules & Guidelines contains a change to the following amendment:

• Same Day  ACH: Moving Payments Faster, Phase 3

The effective date for this change is March 16, 2018.

Phase 3 of The Same Day ACH: Moving Payments Faster rule builds upon the foundation established by the earlier phases of Same Day ACH. The implementation of Same Day ACH will be complete with Phase 3, when most RDFIs will be required to provide funds availability for same day credits by 5PM RDFI local time.

While HomeTown Bank does not currently offer Same Day ACH as an ODFI, we do comply with the Same Day ACH rule as an RDFI.