The Enhancements to ACH Applications Rule (“Rule”) would amend the NACHA Operating Rules (“Rules”) to make enhancements to, or lower barriers to the use of, several existing ACH applications. The Rule would encourage greater use of these ACH applications by removing barriers to their use, and by updating some existing ACH applications to accommodate recent industry developments and regulatory changes. In addition, the Rule contributes to two overarching objectives:
■To better align the Rules, whenever possible, with existing regulations such as Regulation E.
■To provide alternatives within the ACH Network to the legitimate uses of remotely created checks.
Impact of Rule Enhancements
Specifically, this Rule:
■Expands the scope of the TEL application to permit its use for recurring consumer transactions
■Eliminates the requirement that Originators have opt-out procedures for ARC and BOC transactions
■Establishes authorization and identification requirements for ACH debits used to collect return fees for certain checks and ACH debits that have been returned for insufficient or uncollected funds
■Expands the scope of the XCK application to permit its use for certain damaged checks that cannot be imaged, or other check images that cannot be processed Changes Effective in Q1 and Q3 2011
This new Rule goes into effect this year. Specifically, the provision regarding ARC and BOC opt-out procedures becomes effective on March 18, 2011; the other provisions are effective on September 16, 2011.