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.
- Effective on going-forward basis, beginning from effective date of Mar. 19, 2021.
||Financial; Reporting; Risk; Treasury
||United States of America
||Banking; Clearing; Deposits; Payments
Last substantive update on 07/09/2019