NACHA Membership Approves Simplification of NACHA Operating Rules

Reorganized and Redrafted Rules Set Creates More User-Friendly Framework, Substance Remains Unchanged

(AllPayNews) - NACHA—The Electronic Payments Association announced that its voting membership unanimously has approved a major reorganization and redrafting of the NACHA Operating Rules. Three years in the making, Rules Simplification transforms the NACHA Operating Rules. Previously organized around major topics, the simplified Rules framework is structured around the rights and responsibilities of participants in the ACH Network, making them more navigable by participants. In addition, clear, understandable, and consistent language has been adopted throughout the Rules as part of this process. This new version of the NACHA Operating Rules will go into effect on January 1, 2011.

“Rules Simplification creates a more intuitive framework for users and introduces a clarity and consistency of language,” said NACHA President and CEO Janet O. Estep. “NACHA’s goal is to make the Rules more easily understood and the corresponding information easier to find. This sweeping transformation ultimately will support the efficient use of the ACH Network.”

In addition to providing a more user-friendly structure for ACH Network participants, Rules Simplification also:

• Makes the Rules easier to understand;
• Makes rule information easier to find;
• Makes complying with the Rules easier; and
• Achieves these objectives without altering the substantive meaning of the underlying Rules.

In organizing the Rules around the types of participants in the ACH Network, Rules Simplification acknowledges the major roles played by originating and receiving financial institutions and dedicates a major section to each of these roles. Any financial institution will be able to use these sections to determine its rights and responsibilities regarding any ACH payment it sends or receives.

The new Rules also explicitly recognize that originating financial institutions are the entry points into the ACH Network for corporate users and third parties, and that the financial institutions are responsible for those parties’ compliance with the Rules.

Other efforts within the Rules Simplification initiative that will take place later in 2010 include a comprehensive review and overhaul of the NACHA Operating Guidelines, enhancements to the ACH Rules Online Web site, and solutions for chronic “pain points” in the Rules. Examples of pain points include processing of Notifications of Change, and certain sections of the Rules that might be obsolete.

NACHA and its Regional Payments Association members will be making available education and training materials in the coming months to help those who utilize the ACH Network understand and navigate the simplified Rules, before their final publication.