FAQ: Nacha Rules for ACH

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.   

• 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. If you accept bank accounts, Nacha requires compliance. This includes account validation before initiating ACH and adherence to Nacha authorization and recordkeeping rules. ABC Fitness, as your Third-Party Service Provider (TPSP), will operate the risk-based monitoring program on your behalf to help manage fraud and returns, but you are still responsible for following Nacha guidelines in your own authorization and banking processes; opt-out isn’t permitted. 

Q: Are there penalties for non-compliance?  

A: Yes. 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.  

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

Payer Notification for Bank Account Authorization

Q: What is the Payer Notification for Bank Account Authorization?

A: It’s an automatic notification sent to a member whenever a new bank account is added to their wallet, or a previously revoked bank account is reactivated. It confirms the authorization and gives the member a retained copy for their own records.

Q: When did this go into effect?

A: Email notifications for both recurring and one-time bank account authorizations started September 14, 2026. SMS delivery is in development and will follow.

Q: Which payment methods and channels does this apply to?

A: Bank account (ACH) payment methods, added through any channel, including Member Online, online join, or your staff, for both one-time and recurring payments.

Q: Can this notification be turned off, or does it honor communication preferences?

A: No. Because this is a security- and compliance-related notification, it’s part of every account and can’t be disabled. It doesn’t honor location-level or member communication-preference opt-outs.

Q: Is there a fee for this notification?

A: No. There’s no separate charge for this feature.

Q: What if a member doesn’t have a valid email address on file?

A: The notification is delivered by email today. If no valid email is on file, the member won’t currently receive a notification, even if a phone number is available. SMS delivery is coming.

Q: Is there ever a case where the notification isn’t sent?

A: Yes. If the payment method is added before the member’s agreement is active, for example while it’s still pending approval, no notification is sent for that event. Once the agreement is active, future qualifying events will generate a notification.

Q: Is proof of the notification kept on file?

A: Yes. Every time a notification is sent, a PDF copy is generated and stored securely, available to the member from the Documents section of their Member Dashboard.

Revoked ACH Authorizations and Updated Payment Terms

Q: What changed with ACH authorization and revoke language?

A: We’ve refreshed the payment authorization terms members see when they make a payment or join online, so the language explaining how to revoke a bank account authorization is clear and consistent everywhere it appears.

Q: What is an ACH authorization revocation?

A: It’s when a member withdraws their permission for ABC Fitness to initiate ACH debits from their bank account.

Q: Who can submit a notice of revoked authorization?

A: A member can notify ABC Fitness directly, or let you know so you can pass it along. Either way, ABC Fitness processes the request in line with Nacha’s Operating Rules.

Q: What happens once a revocation notice is received?

A: As your Third-Party Service Provider for ACH payments, ABC Fitness takes commercially reasonable steps to stop the next scheduled draft, timing permitting, by flagging the billing record as “Revoked” so it’s excluded from future ACH transmission files.

Q: Does revoking an ACH authorization end the member’s contract?

A: No. Revoking authorization only stops automatic drafting from that bank account. The member’s membership agreement stays in effect, and they may still owe dues, so it’s worth following up about an alternate payment method.

Q: Where do members see the updated language?

A: On the Make a Payment screen in MYiCLUBonline, and in the Payment Authorization Terms on the Online Join Details page, including a dedicated section for Canadian members.

Q: Do I need to do anything?

A: No. The updated language applies automatically everywhere members interact with those screens.

Q: Who do I contact with questions?

A: Reach out to Customer Care at 888-827-9262 or [email protected].