NACHA Rule Change

October 2016: Unauthorized Entry Fee

Effective October 3, 2016

To improve the overall quality of the ACH Network by reducing returns, NACHA is implementing a rule that applies to ACH debit transactions that are returned as “unauthorized” by the Receiver.

The rule introduces a fee of $4.50, assessed to the originating financial institution, for each ACH debit transaction that is returned as unauthorized. The fee will be passed to the receiving financial institution to compensate them for expenses related to servicing and returning the transaction for their customer. The rule applies to the following return reason codes:

  • R05 – Unauthorized Debit to Consumer Account Using Corporate SEC Code
  • R07 – Authorization Revoked by Customer
  • R10 – Customer Advised Unauthorized, Improper, Ineligible or Incomplete Transaction
  • R29 – Corporate Customer Advises Unauthorized
  • R51 – Item Related to RCK Entry is Ineligible or RCK Entry is Improper

The fees for unauthorized debit returns as of October 3, 2016 would be applied to debits originated as early as August 1, 2016.  NACHA will evaluate the fee amount every three years.

Please Note: The fee is not applicable to International ACH Transactions (IATs).

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