NACHA Fraud Detection Debits

On Jul. 8, NACHA extended date of fraud detection changes.

  • Extends effective date from Jan. 1, 2020 to Mar. 19, 2021 for Nov. 2018 change
    to fraud detection standards for ACH WEB debits; industry requested more time.
  • Account Validation Change
  • Added account validation to the commercially reasonable fraudulent transaction
    detection system
    , that ACH originators must use to screen WEB debits for fraud.
  • Prior rule only commercially reasonable fraudulent transaction detection system.
  • The new rule makes explicit that account validation is inherent part of a system.
  • Originators of WEB debits will be required to validate Receiver’s account number
    for first use with a WEB debit entry, and for any subsequent changes to account.
  • Effectiveness
  • Effective on going-forward basis, beginning from effective date of Mar. 19, 2021.

Regulators NACHA
Entity Types Bank; Thrift
Reference PR, 7/8/2019
Functions Financial; Reporting; Risk; Treasury
Countries United States of America
Products Banking; Clearing; Deposits; Payments
Regions Am
Rule Type Final
Rule Date 7/8/2019
Effective Date 3/19/2021
Rule Id 62445
Linked to
Report Issue 7/15/2019
Report Section US Banking

Last substantive update on 07/09/2019