FAQ: Upcoming Nacha Rules Changes

Q: What are the Nacha rules?  

The Nacha rules govern how ACH transactions are initiated, processed, and settled within the United States; they define participant responsibilities, standards, and procedures to ensure secure and efficient electronic payments. ABC Fitness, through its partnering financial institutions, is required to comply with these rules for all ACH transactions processed on behalf of our clients.

Q: Can I use my own bank verification solution?  

A: No – ABC Fitness’s Banking partners, known as Originating Depository Financial Institutions or ODFIs, hold ABC Fitness responsible for ensuring that all merchants are bound by the NACHA Rules, that authorization is obtained, and that all compliance obligations are satisfied.     

Q: Do All member bank accounts and ACH transactions need to be screened?  

A: No – These required processes and procedures do not require the screening of every ACH transaction individually, and the screening is not required to be performed in advance of the processing of each entry;   

• ABC will verify all new members who add a bank account or existing members who update their bank account credentials.  

• For existing members, a previous successful ACH transaction is classified as a successfully verified bank account   

Q: Can I opt out of the risk and compliance changes?  

A: No – Nacha mandates all participants maintain a risk-based monitoring program. Failure to implement an appropriate ACH risk management process is considered non-compliance. 
   
Q: Are there penalties for non-compliance?  

A: Yes – Failure to have some type of risk-based monitoring in place is considered unacceptable. Any entity found non-compliant, could be subject to a Nacha rules violation, which could result in penalties, including significant fines up to $500,000, and losing the ability to process bank account transactions.  

Available Resources to better understand the upcoming rules changes:  

• Review the Nacha Rules Changes video – regions.com  

• Review the New Rules Webinar by Nacha - nacha.org/newrules  

If you have questions or would like to discuss your specific needs, please contact us at [email protected].