Description
The Nacha Operating Rules apply to all participants in the ACH Network, and staying up-to-date on the latest amendments is crucial for compliance. The 2024 and 2025 updates to Return Reason Codes R17 and R06 are part of a broader effort to tackle fraud risks and ensure the efficient return of unauthorized transactions. The 2026 updates will introduce Phase 1 and Phase 2 of Risk Management measures aimed at reducing fraud and enhancing recovery processes.
While viewing this on-demand session, you will learn about the new standardization of Company Entry Descriptions, including the introduction of “PAYROLL” and “PURCHASE” as defined terms, which will help identify and manage ACH risks more effectively. The fraud monitoring enhancements will improve the ability to detect and recover from fraudulent ACH activity across both ODFIs and RDFIs.
Ensure your institution is prepared for these important changes that impact both operations and compliance.
Key Takeaways:
Learn about the upcoming changes to Nacha Operating Rules, including expanded use of Return Reason Codes, funds availability exceptions, and new fraud monitoring measures designed to reduce fraud and improve recovery of funds.
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Expanded Return Reason Codes: Use of R17 (Oct 2024) and R06 (Apr 2025) to combat fraud and streamline returns.
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Funds Availability Exceptions: Updates on timing and procedures for returning unauthorized transactions.
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Fraud Monitoring (2026): New rules for monitoring fraud, including thresholds for ODFIs, RDFIs, and Third-Party Service Providers (Phase 1 & Phase 2).
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Standardized Company Entry Descriptions: Introduction of “PAYROLL” and “PURCHASE” to improve ACH risk management.
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Operations Bulletin: Guidance on Same Day processing for returns, effective June 2025.
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Annual Reviews: Requirements for conducting annual reviews of fraud detection processes and procedures.
Why:
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Stay compliant with key changes to the Nacha Operating Rules.
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Learn how to manage fraud risks with the expanded use of Return Reason Codes and enhanced monitoring protocols.
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Understand the new Company Entry Descriptions to streamline ACH risk management.
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Get up-to-date on important updates to fraud recovery and monitoring requirements that affect both ODFIs and RDFIs.
* Please note that the recording links will be delivered to you via a downloadable PDF in your confirmation e-mail. The PowerPoint that corresponds with the recording will be automatically delivered upon purchasing via email from the website.
