NACHA Rule supports understanding and identification of Third-Party Sender relationships by ODFIs
HERNDON, Va., March 2, 2018 – Today, NACHA-The Electronic Payments Association® reported that banks and credit unions have registered 9,403 Third-Party Senders as of the March 1, 2018 deadline, resulting from NACHA’s Third-Party Sender Registration Rule. The Rule, which became effective on Sept. 29, 2017, requires financial institutions that originate ACH payments to register their Third-Party Sender customers through the NACHA Risk Management Portal.
“Third-Party Senders are important participants in expanding access to ACH payments,” said Jane Larimer, chief operating officer and general counsel at NACHA. “The positive response by banks and credit unions in registering more than 9,000 Third-Party Senders demonstrates their continued commitment to ACH quality.”
NACHA defines a Third-Party Sender as an intermediary acting between the party initiating an ACH payment and the bank or credit union that submits the payment into the ACH Network. Third-Party Senders are common in ACH use cases such as payroll processing, bill payment, and e-commerce.
Under NACHA’s Third-Party Sender Registration Rule, a bank or credit union that originates ACH payments must provide NACHA with a statement whether it has Third-Party Sender customers; those that do must provide basic information such as the name and location of the Third-Party Senders for registration purposes. Now that the initial registration deadline has passed, NACHA will be validating the industry’s compliance with the Rule. Banks and credit unions that have not yet complied will be allowed to complete their registrations prior to any additional action by NACHA to enforce the Rule.
Read The Full Article
This article was originally published here.
