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Grace Period Ending to Comply with Nacha Rule

 

March 31 will be here soon, and if your financial institution has yet to comply with a recent Nacha Rule, that’s a date you’ll want to be aware of. It’s the day Nacha begins enforcement.

The Rule, which took effect Sept. 30, 2022, concerns Nested Third-Party Senders. They are defined as a Third-Party Sender that has an origination agreement with another Third-Party Sender to act on behalf of an Originator and does not have a direct agreement with the Originating Depository Financial Institution (ODFI).

As an ODFI, do you have any Third-Party Senders? And if you do, do any of them have such an agreement? Your bank or credit union needs to get with your Third-Party Sender(s) to determine the answers. Whether it’s yes or no, the answers need to be entered in Nacha’s Risk Management Portal.

Nacha has a video to help your ODFI through the process, as well as a page on the Nacha website with details on the Rule and a downloadable one-page summary.

Ask ePay for assistance in ensuring compliance before enforcement begins by calling the Payments Answerline™ at 800-475-0585, Option 1.  

Click the button below to read our related blog article, ePayAdvisors Help Manage Third-Party Risk, by Tracy Merritt, Senior Vice President, ePayAdvisors.

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