The NACHA Voting Membership has approved the following Rule Amendments:

Accounts Receivable Entries (ARC)

The amendment now allows a Standard Entry Class Code, ARC (Accounts Receivable Entries), for the transmission of single-entry ACH consumer debits for checks that are received via a lockbox or drop-box and converted to ACH entries.  The Rules have also adopted a Reg. E approach where notice equals authorization for the ARC application.  The ODFI warrants that the source document (check) related to ARC entries will not be presented for payment and will be destroyed no later than 14 calendar days after the settlement date of the ARC entry.  This requirement is to prevent the risk that by human error the source document might subsequently be entered into the check processing system for payment as a check. Originators must keep copies of the check for 2 years. 

Most ARC entries must be returned by the RDFI so that the entry is made available to the ODFI no later than the opening of business on the second banking date after the settlement date of the ARC entry.  ARC entries may also be returned by the RDFI for 60 days from settlement date for the following reasons:  

1) improper source document (i.e. the source document is something other than a check drawn on a consumer account), 

2) no notice was provided to the consumer that his check was going to be converted to an ACH debit, 

3) the source document was presented for payment as a check through the check collection system, 

4) the ARC transaction was initiated in an amount other than indicated on the source document or  

5) Stop Payment.  In the first four circumstances, the RDFI would require the consumer to sign an affidavit prior to being re-credited for the transaction.  

Re-presented Check Entries (RCK)

This amendment to the rules removes the requirement that the Originator retain the original item (i.e., the check) to which the RCK entry relates for a period of 90 days from the settlement date of the RCK entry.  Originators are required to destroy the item (check) and retain a copy of the item to which the RCK entry relates for seven years from the Settlement Date of the RCK entry. 

Two new reasons have been added for which RCK entries may be returned by the RDFI for 60 days from the Settlement Date of the RCK entry.  Return Reason Code R51 has been expanded to include that the amount of the RCK entry was not accurately obtained from the item (check), and Return Reason Code R53 has been added for both the RCK entry and the item (check) to which the RCK entry relates have been presented for payment.  In these two circumstances, the RDFI would require the consumer to sign an affidavit prior to being re-credited for the transaction. 

Point-Of-Purchase Entries

This amendment adds two new reasons for which POP entries may be returned R10 by the RDFI for 60 days from the Settlement Date of the POP entry.  These reasons are:  

1) the source document used for the POP entry is improper (i.e., the source document is not a check or sharedraft drawn on a consumer account), and 

2) the source document (check) to which the POP entry relates has also been presented for payment.  In these two circumstances, the RDFI would require the consumer to sign an affidavit prior to being re-credited for the transaction. 

Reinitiation of Entries

This amendment modifies the ACH Rules to limit the number of times that an ACH entry returned using Return Reason Code R01 (Insufficient Funds) or R09 (Uncollected Funds) may be reinitiated to a maximum of two reinitiation attempts following the return of the original entry.  This applies to all SEC codes except RCK. 

An ACH entry returned using any return reason code other than Return Reason Codes R01 or R09 may not be reinitiated unless 

1) in cases where the entry was returned for stop payment, the Receiver has authorized reinitiation, or

2) the ODFI has taken corrective action to remedy the reason for the return. 

Affidavit & Electronic Communication Issues

This rule amendment allows any agreement, authorization, affidavit or other record (e.g., notices, disclosures, etc.) required by the ACH Rules to be provided to the consumer 

1) in electronic form (i.e., via the Internet) and similarly authenticated (i.e., through the use of a digital signature, PIN, password, shared secret etc.), or 

2) in hard copy form, imprinted with a minimum 4-digit code, and similarly authenticated over the telephone by the consumer’s speaking or key-entering the code provided. 

The amendment also provides new terminology for the Affidavit.  The current requirement that “an affidavit be sworn under oath” will be replaced with the phrase/wording “a written statement under penalty or perjury.” This change in wording is intended to clarify that it is not necessary to have such documents notarized.  RDFIs can still use existing affidavits and have them notarized at their discretion or as state law requires.