There are six changes to the ACH Rules coming up that impact Originators and Third-Party Senders. Four changes take effect in 2024, while two additional changes become effective in 2026.
Why it matters: It is important for ACH Originators and Third-Party Senders to stay current with the ACH Rules, including how updates and changes might impact business practices and operations.
Here is a breakdown of upcoming changes and how they apply to corporate users:
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Action on Notification of Change
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Effective Date: June 21, 2024
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Your organization may need to update policies and procedures related to handling Notifications of Change.
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Use of Prenotification Entries
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Effective Date: June 21, 2024
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Your organization may need to update policies and procedures related to processing prenotification entries.
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Return Reason Code R17 (Entry Initiated Under Questionable Circumstances)
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Effective Date: October 1, 2024
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Educate your staff receiving return information on the meaning of Return Reason Code R17.
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Your organization may require procedure changes to include the handling of fraudulent transactions.
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Return Reason Code R06 (Return per ODFI’s Request)
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Effective Date: October 1, 2024
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Your organization may require procedural changes related to the recovery of fraudulent entries, including notifying your financial institution immediately upon learning of fraud.
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Standard Company Entry Description
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Effective Date: March 20, 2026
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Update systems to utilize required Company Entry Descriptions.
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Update procedures for entering Company Entry Descriptions.
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Train staff on the new requirement.
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Origination Fraud Monitoring
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Phase 1 Effective Date: March 20, 2026
Companies originating 6M+ transactions in 2023
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Phase 2 Effective Date: June 19, 2026
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All companies regardless of annual origination activity
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Your organization may require implementation of, or updates to, risk-based processes and procedures to identify and detect fraudulent transactions.