NACHA Rules Have Changed, and We Have You Covered!
At Invoice Cloud, security and compliance are priorities. That is why we are ready to support our clients with the latest NACHA rule change: “Supplementing Fraud Detection Standards for WEB Debits.”
What is the new regulation?
The WEB Debit Account Validation Rule states that ACH Originators of WEB debit entries are required to use a “commercially reasonable fraudulent transaction detection system,” to screen WEB debits for fraud. This existing screening requirement will be supplemented to make it explicit that “account validation” is part of a “commercially reasonable fraudulent transaction detection system.” The supplemental requirement applies to the first use of an account number, or changes to the account number.
The rule takes effect March 19, 2021.
NACHA will not enforce this rule for an additional period of one year from the effective date, with respect to covered entities that are working in good faith toward compliance, but also require additional time to implement solutions. NACHA strongly encourages all of these covered entities to work towards compliance as soon as possible.
Source: https://www.nacha.org/rules/supplementing-fraud-detection-standards-web-debits
Invoice Cloud already uses a commercially reasonable fraudulent detection system. Our system has been in place for more than a year, and Invoice Cloud already:
- Screens ACH Payments
- Automates Notification of Changes (NOC) Updates
- Monitors ACH Rejects
- Displays alerts to prompt payers to take action
Why does it matter and how does it impact Invoice Cloud clients?
If you process EFT/ACH payments and AutoPays through Invoice Cloud, no impact, you’re covered. If you use additional methods to process EFT/ACH payments, then you need confirm compliance. Most billing software partners support an ACH bank draft function: their client (the biller) exports a NACHA file to their bank to process ACH drafts, then imports a payment file to post payments. Many billing software partners cannot or will not have updated their platform to support the new requirements.
What are the benefits of moving bank drafts (and all ACH processing) to Invoice Cloud?
- Regulations constantly evolve, maintaining a bank draft process requires biller to keep up – let Invoice Cloud take that off your plate.
- All NACHA (and PCI) compliance requirements around data storage, transmission and processing handled by Invoice Cloud, removing our clients of any liability.
If you have questions about this new rule or would like to convert your in-house EFT/ACH AutoPay payments to Invoice Cloud, please contact Client Services at helpdesk@invoicecloud.net.