New NACHA Rules and How They Impact Your Business

If you didn’t already hear the news last fallhere’s a recap about some recent changes to NACHA and how they may affect your organization:

It’s important that merchants accepting Automated Clearing House (ACH) payments be aware of a significant change that went into effect last September, which lowered the threshold for unauthorized returns.

As of Sept. 18, 2015, the new unauthorized threshold per originator rule officially went into effect, reducing the allowable percentage from 1 percent to 0.5 percent. Just like in the previous rules, when an originator has exceeded the unauthorized threshold, NACHA will contact the ODFI and require a plan to be implemented to reduce the unauthorized return rate below the threshold for at least 180 days.

According to industry experts, these changes are intended to improve ACH Network quality by reducing the incidence of those ACH transaction exceptions that cannot process through due to incorrect data, or a transaction that is disputed as invalid.

What this means to you
As a business owner, it’s crucial that you are aware of (and adhere) to these recent changes to ACH rules. After all, non-compliance can lead to countless legal headaches and put your business in an unfavorable light. Keep in mind: It’s equally important that the secondary services that support your business also complies with the new guidelines.

If your company’s unauthorized returns do not exceed 0.5% then nothing needs to be done immediately, however, adhering to or following best practices can help you stay below the new threshold. On the other hand, if your company has been typically between 0.5% – 1%, then you will need to deploy immediate tactics to bring your rate below 0.5% to avoid potential disruption in your service.

BillingTree offers innovative resources to help today’s businesses become and remain compliant. If you’re currently a BillingTree Payment Services customer, your account automatically comes with our complimentary customer transaction monitoring service that will always alert you through a series of emails should your company begin approaching the new threshold.

Learn how BillingTree can improve your organization’s bottom line by eliminating manual processes and automating payment cycles with our ACH processing solutions.