ACH Basics: Part 2

With Rayleen Pirnie

ACH Basics: Part 2

With Rayleen Pirnie
  • 1 Video
  • 2 Downloads
  • 2.0 hrs
Course description

ICB Credit: 2.5 CRCM

This three-part webinar series is designed specifically for banks. Each session builds off the last, providing attendees with ACH essentials. This program is the second in the series.

This webinar explores ACH authorization requirements, notifications of change (NOCs), written statements of unauthorized debit, and revoked authorizations in the ACH Network from the perspective of how each affects a bank and their customers. We will highlight appropriate ACH Rules, plus applicable laws and regulations. From initial obligations to ongoing requirements, we'll look at each issue from multiple perspectives, ensuring attendees have a holistic view of each process in order to properly manage risk. We will also explore common areas of confusion and situations that can create a Rules violation.

In addition to course materials, attendees will receive a free Notification of Change quick reference guide.

Note: Have your 2017 NACHA Operating Rules and Guidelines book (aka ACH Rules) handy! If you do not have an ACH Rules book, please contact your regional payments association, or order from www.nacha.org. The instructor will be providing page numbers for your reference throughout the program, so you might want a highlighter handy as well.

This course is recommended for bank staff who are new to ACH and those studying for the Accredited ACH Professional (AAP) Exam.

Attendees will be able to:

  • Recognize authorization requirements for different types of ACH transactions
  • Summarize authorization handling requirements
  • Understand sound business practices for managing revoked authorizations
  • Identify and locate relevant provisions of laws and regulations
  • Identify Notification of Change obligations
  • Define the correct process, using instructor provided scenarios
  • Demonstrate your new knowledge by successfully completing the course exam

Agenda:

Here is what we will cover:

  • Authorizations
    • Locating appropriate resources in the ACH Rules book
    • Authorizations by Standard Entry Class Code
      • Covers both bank authorizations (i.e. CIE and loan repayments) and corporate customer authorizations (i.e. PPD)
      • ACH Rules Requirements
      • Other applicable laws and regulations
      • Specific language examples
      • Requesting an authorization (RDFI)
      • Managing requests for an authorization (ODFI)
      • Contract provisions with Originator
      • When a consumer claims invalid / forged authorization
    • Sound business practices to managing the authorization process
    • When a new authorization is required
  • Notifications of Change (NOC)
    • Locating appropriate resources in the ACH Rules book
    • Definition of Notifications of Change, including examples
    • Tips on sending a NOC (RDFI)
    • How to handle when you receive (ODFI)
      • Contract Provisions
      • Rules violations
    • Single-entry vs. Recurring-entry
    • Filing a Rules violation
  • Written Statement of Unauthorized Debit (WSUD)
    • Locating appropriate resources in the ACH Rules book
    • Purpose
    • Example
    • Operations Bulletin 03-2003
    • Tips and cautions
      • Proper WSUDs
      • In-network returns vs. out-of-network returns
    • What a WSUD means for the RDFI
    • What a WSUD means for an ODFI and their customer (Originator)
    • Applicable laws and regulations
      • When a consumer can't (or won't) complete a WSUD - obligations of the RDFI
  • Revoked Authorization
    • Locating appropriate resources in the ACH Rules book
    • When consumers revoke their authorization
    • Applicable laws and regulations
    • Managing revoked authorization claims (RDFI)
      • Initial responsibilities
      • WSUD
      • No WSUD
      • Ongoing responsibilities
    • Notification of revocation (ODFI)
      • Initial responsibilities
      • Ongoing responsibilities, including out-of-network returns
      • Rules violations
    • What the ACH Rules require
    • Other considerations
  • Scenarios
  • Course Exam

Who Should Attend:
This informative session is designed for anyone in the institution who is new to the ACH Network including Operations, Auditors, and those responsible for ACH Compliance. It's also a great basics course for those studying for the Accredited ACH Professional (AAP) Exam.

Course Curriculum

Video
113:16
ACH Basics: Part 2
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Materials
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Instructor

Rayleen Pirnie
Rayleen Pirnie

Rayleen is the founder and owner of RP Payments Risk Consulting Services, LLC. based in Missouri. She is a nationally recognized payments risk and fraud expert. Her programs educate financial institutions and businesses on topics ranging from payments fraud to information security. She is the author of several payments risk and fraud blogs geared toward helping organizations recognize threats and protect themselves from loss.

Always interested in Risk Management, Rayleen has supported many notable organizations over the years. She is a member of the International Association of Financial Crimes Investigators, supporting their training programs since 1998. She sat on NACHA’s Risk Management Advisory group for two terms, and assisted with FSISAC’s first CAPP exercise.

For 16 years Rayleen has spoken at national and regional conferences. Recent events include NACHAs Payments Conference, the American Bankers Association Risk Management Forum, the Security Matters annual conference at Murray State University, the Risk Management Association, and the Federal Reserve Bank of Kansas City Risk Management Conference.

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