NACHA Readies Rule Changes To Help Avoid Fraud

Steve Bills writes for the American Banker about a "sweeping" set of rule changes NACHA is planning to propose designed to help reduce potential fraud risks in the ACH system. In June 2005, NACHA's board failed to adopt a Network Returned Item Fee proposal that was intended to provide the mechanism for a receiving bank to be compensated by the originating bank in the event an ACH item was found to have been unauthorized (submitted in error or fraudulently) by the receiver. Today, there's no such mechanism in the ACH system. Bills reports that this time around NACHA is looking beyond just the returned item fee at other risk management approaches.