Managing Unauthorized ACH Items - 2019
Presented by
John Burnett
Recorded on November 19, 2019
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2.0 hours
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Bank customers’ payment patterns are changing. Transactions by check are declining, while those completed by debit card and ACH continue to rise. NACHA, The Electronic Payments Association, has been particularly successful In its efforts to grow its piece of the payments marketplace. In July 2019, NACHA touted a jump of 46% in its quarterly Same Day ACH volume over the prior year, with almost 60 million same-day credits and debits processed in the second quarter of 2019. Overall second quarter ACH volume included more than 3.55 billion debits and 2.55 billion credits. With that volume comes an increase in unauthorized transactions, making accurate and timely management of unauthorized transaction claims more and more important for your bank.
For many of those claims – those made by consumers – Regulation E prescribes a claims investigation and management process. There are specific timing, notification and resolution requirements, along with the potential for provisional credit to the consumer while your investigation proceeds. There are also precise requirements on allocation of liability to the consumer for unauthorized EFT claims involving a series of transactions over multiple months. Those Regulation E rules co-exist with NACHA rules that can seem to conflict with Regulation E.
Sorting out which rules apply to specific scenarios so that your bank handles claims with procedures that are both timely and compliant can be more than a challenge – and mistakes in policy, procedures or practice in handling claims of unauthorized transactions can result in poor customer service and increase the risk of regulatory criticism, adverse public relations and losses through litigation.
This webinar analyzes NACHA rules and Regulation E to give your bank the information needed to develop compliant procedures to mitigate those risks.
During the presentation, we’ll carefully review –
This webinar addresses only unauthorized ACH entries. Debit card transactions are not discussed.
John Burnett
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