A package of Nacha Rule changes taking effect October 1 are designed to stop fraud before it happens, and to improve funds recovery if it does.  Several of the new rules are really an expansion of existing rules, aimed at giving financial institutions additional tools they can use for questionable entries. Another change is meant to improve the process when there’s a claim of an unauthorized entry or an entry authorized under false pretenses.  

Two of the changes concern use of certain Return Reason Codes. RDFIs will be able to use Return Reason Code R17 to return any entry believed to be questionable or potentially fraudulent. The Rule will allow this use of R17 but won’t require it. Also, the Rules will permit additional uses of Return Reason Code R06, allowing an ODFI to request a return from the RDFI for any reason. The RDFI can choose whether or not to comply but must respond to the request.

Also on the topic of risk, Nacha’s Risk Management Portal Secure Exchange and ODFI TPS Lookup modules have been released into production. Financial institution Portal admins and users have received an email from Nacha explaining the changes, and the ODFI and RDFI instructions have been updated within the Portal. Click Read More below for additional details.