WASHINGTON (12/27/13)--The Credit Union National Association is encouraging credit unions to weigh in on a proposal issued last month by NACHA--The Electronic Payments Association, which aims to reduce risk and exceptions on Automated Clearing House (ACH) networks.
The NACHA plan could improve NACHA's ability to identify and enforce rules against "outlier" originators, those responsible for the highest levels of exceptions. An originator is any individual, corporation or other entity that initiates entries into the Automated Clearing House Network.
The NACHA proposal would:
Reduce the existing return rate threshold for unauthorized debits from 1% to 0.5%;
Establish a return rate threshold for account data quality returns (i.e., administrative returns) at 3% and an overall debit return rate threshold (for all return reason codes) at 15%;
Clarify the definition of a "reinitiated entry";
Apply risk management rules to third-party senders; and
Expand NACHA's enforcement authority.
CUNA has extended its deadline for comment to Jan. 7 from Dec. 16. Comment is due to NACHA on Jan. 13.