Recent UPDATES to the Rules Stop Payments vs Unauthorized Entries - Are You in Compliance?

Do you often wonder when to use a Stop Pay form and when to use a Written Statement of Unauthorized Debit (WSUD)? This is YOUR session!

• Recent UPDATES to the Rules indicate how Meaningful Modernization and subsequent Entries fit into stop-payment compliance.
• Introduction of a re-purposed Return Reason Code R11 has changed the process for returning unauthorized transactions and compliance with the Nacha Operating Rules

The trainer will provide several scenario examples when a financial institution and their account holder are dealing with (1) a request to stop payment, or (2) they revoked/canceled the payment, and sometimes (3) their account being debited by a company they never authorized (where it is already posted to their account).
The Nacha Operating Rules have specifics for you to follow to be sure you are complying each time you help your account holder with their request(s).

• Determine the difference between Stop Payment for consumer accounts vs. business accounts
• Help identify what form to use and in which situation (Stop Pay vs. Unauthorized)
• What questions and conversations should be taking place between the account holder and the customer service/frontline staff working with the customer/member?
• Key points illustrated in the program (using case studies) will assist customer service and front-line staff as well as identify details for operations staff.
• This 90-minute session will definitely help clear things up when processing unauthorized, authorization revoked, and stop payments!

Each participant in the ACH Network is required to follow the Nacha Operating Rules and be compliant. There are several NEW amendments recently passed that will change the ACH Network processes – this is a NEED to know!
This session will provide an overview of the changes to Same Day ACH (SDA)-(effective March 2021), the Unauthorized Return process with a new Return Reason Code R11, and the ACH Contact Registry (both effective in 2021) – NEW!!! and more!
Details on the new amendments to the Nacha Operating Rule on Limitation on Warranty Claims, the Reversal Process and Rules Enforcement changes surrounding reversals, and Meaningful Modernization to enhance the ACH Network to keep up with changes in the payments landscape (all effective in 2021). Plus, updates on the most recent Rules amendment that includes clarifying the roles and responsibilities of Third-Party Senders (TPS) in the ACH Network by; addressing the existing practice of Nested Third-Party Sender relationships, and more (effective in Sept 2022)

• Define the rules surrounding Stop Payments
• Identify the difference in the rules between a consumer and non-consumer Stop Payment
• List tips that will help customer service and frontline staff ensure they are asking the right questions of the account holder
• Outline what an unauthorized transaction is and when to use a Written Statement of Unauthorized Debit (WSUD)
• Define the difference and “when to use” R10 vs. R11 Unauthorized Return Reason Codes
• Review timeframes for Stop Payments and Unauthorized Payments
• Illustrate what constitutes an entry to be returned as Authorization Revoked vs. Stop Payment vs. Unauthorized
• Describe using scenarios – what, when, and how of Stop Payments and Returning Unauthorized Entries

Recent “minor Rules changes” made Stop Payments different in the Rules with the language used and what happens with Stop Payments due to Meaningful Modernization. Customer service, frontline, and operations staff struggle each day with the question – “What does my account holder want me to do…Stop this payment, return it, or perhaps they revoked it, -- what are my next steps?” Return Reason Codes R10 vs. R11 when returning unauthorized transactions will be discussed in detail. This training program will help find answers to these struggles. Stop Payments and Unauthorized transactions (including revoked transactions) are still the number one issues when processing exceptions for ACH transactions daily

• Bank operations staff
• New employees in the payments industry
• Bank managers and payment professionals
• CEOs and CFO’s
• Risk, Compliance, and Audit personnel
• Aspiring AAPs and current AAPs for AAP CE Credits

Donna K Olheiser, AAP, is the vice president of Education Services and founder of Dynamic Mastership, LLC. Donna is an enthusiastic and energetic Certified Master Trainer with over 14 years’ training experience. She has designed and facilitated over 100 training sessions each year with her expertise being the rules for companies and financial institutions when processing specifically ACH electronic payments, then scheduling the training events to facilitate/deliver the material through a variety of venues (webinars, teleseminars, in-person workshops, including regional and national conferences). Donna has over 24 years of experience in the financial services industry which includes 9 years’ experience as the education service director at a Regional Payments Association (RPA), where she managed and facilitated the entire education program for nearly 800 financial institution members. Prior to that, Ms. Olheiser spent 14 years in various departments with the Federal Reserve Bank of Minneapolis and also holds the Accredited ACH Professional (AAP) designation (achieved in 2004).