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NACHA Rule Change
September 2013: Originator Obligations with Respect to Notifications of Change for Single Entries
On September 20th, 2013, the Rule change regarding Originator obligations to Notifications of Change for Single Entries go into effect. Specifically, this Rule change makes optional the Originator's response to Notifications of Change (NOCs) for Single Entry Payments.
The Rule change will no longer require Originators to make changes requested within NOCs related to Entries identifiable as Single Entries, although they may choose to do so at their discretion and based on their particular business models. Specifically, the Rule defines Originator action on NOCs related to the following SEC Codes as optional: ARC, BOC, POP, RCK, and XCK Entries, as well as TEL and WEB Entries bearing a Single Entry indicator ("S" or "blank" for TEL and "S" for WEB). Originators should still act on the NOCs related to Single Entries prior to the Rule implementation date of September 20th, 2013.
This Rule change does not alter an RDFI's (Receiving Depository Financial Institutions') right to initiate an NOC for any Entry, including those identifiable as Single Entries; however, RDFIs will need to recognize that changes requested for Single Entries might not be made by the Originator.
If you are an Originator of those Single Entries mentioned above, the response to the NOCs as initiated by the RDFI related to these entries is optional starting on September 20th, 2013.
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