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ChapterTitleNews

• Clarifying permissible and impermissible
practices for the collection of ACH debits returned
for insufficient funds and other reasons
• Explicitly applying certain risk management rules
to third-party money transfer senders

Additionally, NACHA wants the authority to initiate
enforcement proceedings for potential violations of
the rules. "Unauthorized transactions within the ACH
network have a particularly pernicious effect on ACH
network integrity, creating significant reputational issues
for RDFIs [Receiving Depository Financial Institutions]
and the ACH network as a whole," NACHA said.
Network quality

NACHA noted that the second proposed rule would
institute fees under the following conditions:

• When an RDFI returns an ACH transaction to an
ODFI due to incorrect account data within the
transaction
• When an RDFI corrects information within an
ACH transaction and sends the correction back
to the ODFI
• When an RDFI returns an ACH transaction to an
ODFI due to a problem with the money transfer
receiver's authorization

"For each of these incentives, the fee would be paid by the
ODFI and passed through to the RDFI to partially offset
the RDFI's cost for exception processing and customer
service," NACHA said.
Issues with outliers

NACHA said that even among third-party money
transfer providers that are deemed high risk because they
deal with low income consumers, outliers exist that have
confusing money transfer policies, and those policies
result in high levels of exceptions due to insufficient
funds. NACHA added that, at those outliers, consumers
may not even "understand that s/he was authorizing an
ACH transaction."

Of additional concern to NACHA are high-risk providers
that deliberately circumvent ACH rules to submit, as if
for the first time, returned money transfer requests. A rule
called Reinitiation allows exceptions to be resubmitted
under certain limited circumstances.
NACHA said it has "reason to believe that some high-
risk originators may ignore or attempt to evade the
requirements of the Reinitiation Rule, including by
changing content in various fields to make an entry
appear to be a new entry, rather than a reinitiation."

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