On September 21st, 2012, the International ACH Transaction ("IAT") Standard Entry Class code will receive additional modifications and refinements. These changes to the NACHA Operating Rules ("Rules") clarify the minimal description standards for IAT entries, provide Gateway notifications of rejected inbound international payments, and provide a new transaction type code to identify remittances.
Minimum Description Standards for IAT Entries
This change clarifies the minimum description standards within the Rules as they relate to IAT entries. As with any entry to a consumer account, the RDFI of an inbound IAT entry must provide the consumer with certain descriptive information in accordance with the requirements of the Rules and Regulation E. With the implementation of IAT, however, the minimum description standards within the Rules were not modified to make explicit that IAT entries also convey information related to terminal city, terminal state, terminal identification code/location, and check serial number for certain types of payments, and that, when such information is present in an IAT entry, it must be included on the consumer's bank statement.
If you originate IAT entries today that contain information such as terminal city, terminal state, your Receivers may see greater clarity of information after the new Rules implementation on September 21st, 2012, if their current RDFI did not previously provide these descriptions on their statements.
Gateway Notification of Rejected Inbound International Payment
This Rule change establishes a requirement for the Gateway Operator to notify the intended RDFI if an inbound international payment transaction was rejected or blocked because it would violate U.S. law and provide minimum information related to the transaction, unless prohibited by law.
Transaction Type Code to Identify Remittances
This Rule change expands the list of eligible code values that may be included within the transaction type code field. On September 21st, 2012, the code "REM" may be used to identify international payments through a remittance product or service.
For additional information regarding this Rule change, or to request a copy or access to the latest ACH Rules from PNC, please contact your Treasury Management representative to request an access code to 'achrulesonline.org'.