2023 ACH Origination Guide
ACH Facts & ACH Originator Responsibilities
Page 1 of 11
The ACH Network, which provides for the interbank clearing of electronic payments, is governed by The
NACHA Operating Rules and Guidelines (Rules). The Rules apply to all entries and entry data transmitted
through the ACH Network.
As an ACH Originator, you must comply with and are bound by the
Rules.
To ensure compliance, all ACH Originators must have access to a current copy of the Rules. The ACH
Rules for Corporate Originators is published annually and may be ordered at
https://epayresources.org/
.
Alternately, an electronic version of the ACH Rules may be viewed online by registering at
https://www.achrulesonline.org/.
American National Bank (Bank) provides this document as a brief summary of ACH facts and ACH Originator
Responsibilities. It is not a replacement or substitution for the Rules, which are subject to change.
ACH Facts
•
ACH entries are categorized as
“
consumer
”
or
“
corpo
rate.”
•
ACH is capable of crediting or debiting checking or savings accounts.
•
ACH entries are received by most financial institutions.
•
ACH is a batch system (not real time).
•
ACH entries are irrevocable once they have been sent for processing.
•
ACH stop payments do not have an expiration date.
ACH Legal Framework
You are required to abide by multiple rules and agreements including, but not limited to, the following
when initiating ACH transactions:
•
NACHA Operating Rules (
www.nacha.org
)
•
Regulation E (
for consumer entries
)
•
UCC4 (
for corporate credits
)
•
Bank Deposit Agreement and Terms and Conditions
•
Bank Cash Management Agreement
•
Authorizations from employees, customers, etc.
•
Bank and Corporate agreements
Definitions of ACH Participants
Originator
–
The Originator is the entity or company that agrees to initiate ACH entries into the payment
system according to an arrangement with a Receiver. The Originator is usually a company directing a
transfer of funds to or from a consumer or another company
’s a
ccount.
Originating Depository Financial Institution (ODFI)
–
The ODFI is the financial institution that receives
the payment instructions from Originators and forwards the entries to the ACH Operator.
Automated Clearing House Operator
–
An ACH Operator is the central clearing facility operated by
a private organization or the Federal Reserve Bank on behalf of Depository Financial Institutions
Receiving Depository Financial Institution (RDFI)
–
The RDFI is the Depository Financial Institution
that receives ACH entries from the ACH Operator and posts the entries to the accounts of its depositors
(Receivers).
Receiver
–
A receiver is a natural person or an organization that has authorized an Originator to initiate an
ACH entry to the Receiver
’
s account with the RDFI. A Receiver may be either a company or a consumer,
depending on the type of transaction.
How Does the ACH Network Function?
As the Originator, your company must first obtain authorization to initiate a transaction to the Receiver’s
account or
provide notice to the Receiver that a transaction will be initiated to their account. Your
2023 ACH Origination Guide
ACH Facts & ACH Originator Responsibilities
Page 2 of 11
company (Originator) then creates a file of ACH transactions assigning a company name that is easily
recognized by the Receiver. The file is then sent to your Originating Depository Financial Institution
(ODFI), American National Bank.
The ODFI collects ACH files from Originator with which it has contractual relationships, verifies the
validity of these files and at specified times, transmits these files to the ACH Operator. The ACH
Operator receives ACH files from the ODFI, edits the file to make sure they are formatted properly and
distributes files of entries to the Receiving Depository Financial Institution (RDFI). The RDFI
receives files of entries from the ACH Operator for its account holders. Entries are posted based upon
the Settlement Date and account Number. Periodic statements are provided to the Receiver with
descriptive information about the ACH transaction, including the date of the transaction, dollar amount,
payee (Originator) name, transaction description (i.e. Payroll, water bill).
How Are ACH Funds Settled?
Settlement is the actual transfer of funds between financial institutions to complete the payment
instructions of an ACH entry. The Federal Reserve Bank provides settlement services for ACH entries.
The timing of settlement is based upon the Effective Entry Date indicated on the ACH file and the time
of its delivery to the ACH Operator. Your company as the Originator will determine the Effective Entry
Date of the file you send to your ODFI. This is the date your company intends the entries to post to the
accounts of the Receivers (employees or customers). When the ACH Operator processes an ACH file, the
Effective Entry Date is read and entries are settled based upon that date, known as the Settlement Date.
The Effective Entry Date in most cases is the same as the Settlement Date, but it is possible that the
Settlement Date could be after the Effective Entry Date. For example, if the ACH Operator cannot settle
on the Effective Entry Date due to untimely file delivery, a stale date, weekend or holiday, the ACH Operator
will apply a Settlement Date of the next business day.
Your Responsibilities as an Originator
•
Obtain proper authorizations, dependent upon the transaction type, and retain authorizations for two
years past revocation.
•
If requested by the Bank, provide a copy of the authorization. The Bank may request to see your
authorizations from time to time as part of an annual audit.
•
Send entries on the proper date.
•
Give appropriate notice to debtor if changing amount or date.
•
Cease subsequent entries when notified.
•
Make necessary changes to payee account information within three (3) banking days upon receipt of
a Notice of Correction or before another entry is sent.
•
Check payees against OFAC compliance checklists.
•
Protect the banking information received to originate transactions.
•
Ensure your computer and you are protected as outlined in the Bank Cash Management Agreement.
•
Ensure the Originator is clearly identified as the source of the ACH transaction. Specifically, populate
the Company Name Field of the NACHA formatted file with a name known to and readily recognized
by the Receiver of the entry.
Direct Deposit Payroll Authorizations (Consumer)
•
Use a direct deposit authorization form that collects employee account information. This form should
allow the company to make credit and debit entries in the event a payroll adjustment is necessary.
•
Obtain a voided check from the employee (
if possible
).
•
The most common SEC code for direct deposit is PPD.
2023 ACH Origination Guide
ACH Facts & ACH Originator Responsibilities
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Consumer Debit Authorizations
•
For consumers, an authorization to debit an account must be in writing or
“
similarly authenticated.
”
•
The most common SEC code for consumer debits is PPD.
Corporate Authorizations
•
For companies, there must be a record of an agreement between the two parties.
•
The most common SEC codes for corporate transactions are CCD or CTX, depending upon
addenda origination. It is used for debits and credits.
Changing Date or Amounts of Debits
•
ACH Rules require you to notify your debtors of any changes in date or amount debited under the
following circumstances:
1.
Seven (7) calendar days’ notice for a change of date (
consumer and corporate
).
2.
Ten (10) calendar days’ notice for a change in amount (
consumer only
).
•
Sending the notice via U.S. Mail is acceptable.
Prenotifications (Prenotes)
•
Prenotes are zero-dollar entries that precede the first live entry. The purpose of a prenote is to verify account
information.
•
Prenotes are optional for you to send. However, if sent, prenote rules must be followed and a prenote
must precede the first live entry by at least three (3) banking days.
•
The Receiving Bank is not required to validate the name of the payee on the prenote, although many
do; they are only required to check the account number.
Notice of Change (NOC)
•
NOC is created by the Receive
r’s fi
nancial institution to notify the originator (via the Bank) that:
1.
Previously valid information in an ACH entry (Direct Deposit/Direct Payment) is now outdated,
and needs to be
changed
2.
Information in an ACH entry (Direct Deposit/Direct Payment) is erroneous, and needs to be
corrected
.
•
The Bank will notify you of any NOCs received on your behalf.
•
ACH Rules require the originator to make changes or corrections within three (3) banking days of receiving
the information from the Bank or before another entry is sent.
•
The Receiving Bank warrants that the Information they provide to you is correct.
•
The Bank may pass along any fines received based upon your non-compliance.
•
The Originator has the option of responding to NOCs for Single Entry (
non-recurring
) payments. This
applies to the following SEC Codes only: ARC, BOC, POP, POS, RCK and XCK entries, as well as,
TEL and WEB entries bearing a single entry indicator (
“S”
or
“bl
ank
”
for TEL and
“S”
for WEB
).
Notification of Change (NOC) Codes (most common)
NOC Code
Reason
Description
C01
Account Number
Account number is incorrect or is formatted incorrectly.
2023 ACH Origination Guide
ACH Facts & ACH Originator Responsibilities
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C02
Transit/Routing Number
Due to a merger or consolidation, a once valid routing number must
be changed.
C03
Transit/Routing Number and
Account Number
Due to a merger or consolidation, a once valid transit/routing number
must be changed and the account number structure is no longer valid.
C04
Account Name
Customer has changed name.
C05
Transaction Code
Transaction code is incorrect and this is causing the ACH entry to be
routed to the wrong application (demand or savings).
C06
Account Number and
Transaction Code
Account number is incorrect or is formatted incorrectly and the
transaction code is incorrect causing the ACH entry to be routed to the
wrong application (demand or savings).
C07
Transit/Routing Number,
Account Number and
Transaction Code
Due to a merger or consolidation, a once valid transit/routing number
must be changed, the account number structure is no longer valid and
the transaction code is incorrect causing the ACH entry to be routed to
the wrong application (demand or savings).
C09
Individual Identification
Number
The individual id number was incorrect.
C13
Addenda Format
Information in the Entry Detail Record was correct and the entry was
processed and posted by RDFI. However, information found in the
addenda record was unclear or was formatted incorrectly.
Returns
•
Returns must be processed by the Receiving Bank within 24 hours of settlement. Returns that are
unauthorized beyond the 24 hours are the company
’s lia
bility and any disputes may have to be settled
outside of the banking network. Review your account activity daily.
•
An exception to the 24-hour rule is consumer unauthorized returns, which may be returned within 60 days
of posting.
•
The use of consumer (PPD) or corporate (CCD) entry codes determines the applicable ACH return
rules.
•
If the Receiving Bank receives a dispute claiming a debit was unauthorized, the Receiving Bank must
get a signed Written Statement of Unauthorized Debit from the account holder. You may obtain a copy
of that statement by requesting a copy through the Bank.
•
You may re-initiate a debit entry up to two times if (1) the entry has been returned for insufficient or
uncollected funds (
Return Reason Code R01 and R09
), (2) the entry has been returned for stopped
payment and re-initiation has been authorized by the Account Holder, or (3) the Bank has taken
corrective action to remedy the reason for the return.
•
A
“
Stop Payment
”
return may be re-initiated only if you receive approval from the payee to re-send
the item.
•
It is a violation of NACHA Rules to re-initiate the debit entry if a return is received for any other
reason.
➢
Disagreements regarding authorization should be handled OUTSIDE of the ACH Network
➢
Originators must maintain a return rate below .5% for entries returned as unauthorized.
➢
Originators can have no more that 3% of your total debit entries returned due to administrative
or account data errors.
➢
Originators can have no more than 15% of your total debit entries returned for any return
reason.
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ACH Facts & ACH Originator Responsibilities
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Reinitiation of Return Entries
An Originator may reinitiate an entry that was returned if:
• the entry was returned for insufficient or uncollected funds (the entry cannot be reinitiated more than two times
following the return of the original entry);
• the entry was returned for stopped payment and reinitiation has been authorized by the Receiver; or
• the Originator has taken corrective action to remedy the reason for the return.
All reinitiated entries must include the description
“RETRY PYMT”
in the Company Entry Description field
to identify entries that are permissible resubmissions of returned entries under the rules for reinitiation. This
description supersedes any existing entry description and notifies the Receiver that the entry relates to a
previously returned entry; it will facilitate research and dispute resolution for RDFIs. Except for reinitiated
reversals, the description “RETRY PYMT” must replace the original content of the Company Entry
Description field transmitted in the original entry, even in cases where the original entry contains a description
required by the Rules, such as REDEPCHECK, RETURN FEE, etc.
The Rules explicitly prohibit the reinitiation of entries outside of the limited circumstances stated above. The
Rules clarify four categories of entries that are not considered reinitiations. First, a debit entry in a series of
preauthorized recurring debit entries will not be treated as a reinitiated entry, even if the subsequent debit entry
follows a returned debit entry, as long as the subsequent entry is not contingent upon whether an earlier debit
entry in the series has been returned. For example, if a consumer arranges for his minimum payment on a credit
card balance to be paid monthly from an account based on a preauthorization for recurring debits, and the
consumer’s debit entry for the September minimum payment is returned for insufficient funds, the debit entry
for the October minimum payment would not be considered a reinitiation of the debit entry with respect to the
returned September entry.
Second, a debit entry is not be considered a reinitiation if the Originator obtains a new authorization for the debit
entry after the receipt of the return. For example, if an Originator has twice attempted to re-present an entry
returned as NSF, and the consumer later provides a new authorization because he now has funds in his account,
the Originator is permitted to debit the account. The timing requirement is important, however, since
Originators will not be permitted to obtain advance approval to debit an account in a manner that would
otherwise violate the reinitiation rule.
Third, an entry that has been returned due to invalid or incorrect routing and account information (i.e., R03/R04)
is not considered to be a reinitiated entry when corrected and subsequently transmitted into the ACH Network.
By definition, a Reinititated Entry is an entry to the same Receiver’s account. In this situation, a new entry with
corrected routing and/or account number information would be the first presentment to the correct Receiver’s
account and should not be identified as a reinititated entry. To identify the correct entry as a reinitiated entry
would cause confusion to the Receiver, since there was no previous attempt to post the entry to the correct
Receiver’s account.
Lastly, if the RDFI returns an entry using R11 - Customer Advises Entry Not in Accordance With the Terms
of the Authorization, and the Originator is able to correct the reason for the return, the Originator can submit a
new entry without obtaining a new authorization. The new entry must be submitted within sixty days of the
Settlement Date of the R11 return entry. The new entry will not be treated as a reinitiated entry if the defect is
corrected to conform to the terms of the original authorization.
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ACH Facts & ACH Originator Responsibilities
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The following errors causing the return of the original entry as R11 cannot be corrected, and transmission of a
new entry in these cases is prohibited:
(1 )the Originator did not provide the required notice for an ARC, BOC, or POP entry prior to accepting the
check, or the notice did not conform to the requirements of the Rules;
(2) the source document for an ARC, BOC, or POP entry was ineligible for conversion; or
(3) the reversal was improperly initiated.
Return Entry Codes (most common)
Reason for Return
Action by Originator
Available
SEC Codes
Return Deadline
R01
–
Insufficient Funds
Originator may initiate a new ACH entry
within 180 days of original Settlement date.
ALL
24 HOURS
R02
–
Account Closed
Originator must stop initiation of entries and
obtain an authorization from the Receiver for
another account.
ALL
24 HOURS
R03
–
No Account / Unable to
Locate
Originator must stop initiation of entries and
contact the
Receiver for correct account information.
ALL
24 HOURS
R04
–
Invalid Account
Originator must stop initiation of entries until
account number / structure is corrected.
ALL
24 HOURS
R05
–
Unauthorized Debit to
Consumer Account Using
Corporate SEC Code
Originator must stop initiation of entries.
CCD, CTX
60 Days – Written
Statement of
Unauthorized Debit
R06
–
ODFI Request for Return
Originator must accept requested return.
ALL
Not Applicable
R07
–
Authorization Revoked
Originator must stop initiation of entries until
new consumer authorization is obtained.
PPD, TEL,
WEB
60 Days – Written
Statement of
Unauthorized Debit
R08
–
Payment Stopped
Originator must contact Receiver to identify
the reason for the Stop Payment and obtain
authorization before reinitiating the entry.
ALL
24 HOURS
R09
–
Uncollected Funds
Originator may initiate a new ACH entry
within 180 days of the original Settlement
Date.
ALL
24 HOURS
R10
–
Customer Advises Not
Authorized, Notice Not Provided,
Improper Source Document, or
Amount of Entry Not Accurately
Obtained from Source Document
Originator must stop initiation of entries.
ARC, BOC,
POP, PPD,
TEL
, WEB
60 Days – Written
Statement of
Unauthorized Debit
R11- Customer Advises Entry Not
in Accordance with the Terms of
the Authorization
Originator must stop initiation of entries.
ARC, BOC,
POP
60 Days – Written
Statement of
Unauthorized Debit
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ACH Facts & ACH Originator Responsibilities
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Reversals
•
If a reversing entry must be made, please consult the ACH Manager User Guide or contact
Customer Service for instructions.
•
Reversals may only be made for the following three conditions:
1.
wrong dollar amount
2.
wrong account number
3.
duplicate transaction
•
When initiating a reversal, the reversing entry must be for the full amount, must be sent within
five (5) banking days of original entry and must be sent within 24 hours of discovering the error.
•
The Receiving Bank is under no obligation to post the reversing debit if it overdraws the payee’s
account or if the payee’s account is closed.
•
A payee must be notified if a reversing entry debits his or her account. However, a payee does not
need to authorize the reversing debit.
•
The word “REVERSAL” must be placed in the Company Batch Header Field and if the file is
reversing an erroneous file, then a correcting file must be initiated with the reversing file.
OFAC (Office of Foreign Asset Control)
•
You are required to check payees against OFAC compliance checklists.
•
OFAC lists countries, groups and individuals with which U.S. Companies are not permitted to send
or receive funds.
•
The Bank must protect itself by informing every client that it is against the law to send debit or
credit entries to OFAC-blocked entities.
•
You may check the OFAC SDN list at: http://sdnsearch.ofac.treas.gov
What is an ACH Application (SEC) Code?
ACH applications are payment types used by Originators, such as your company, to identify ACH debit
and/or credit entries transmitted to a corporate or consumer account at the RDFI. Each ACH
application is identified and recognized by a specific Standard Entry Class (SEC) code, which appears in
the ACH record format. The SEC code also identifies the specific record layout that will be used to carry
the payment and payment-related information
R12
–
Account Sold to Another DFI
Originator must stop initiation of entries and
obtain correct routing number information for
initiation of subsequent entries.
ALL
24 HOURS
R16
–
Account Frozen
Originator must stop initiation of entries.
ALL
24 HOURS
R20
–
Non Transaction Account
Originator must stop initiation of entries.
ALL
24 HOURS
R24
–
Duplicate Entry
Originator should accept the return. If the entry
has already been reversed, Originator should
contact the RDFI to determine a solution. An
Originator may reverse an erroneous or
duplicate ACH entry/file up to 5 banking days
after the Settlement Date of the entry/file.
OR it may request the RDFI to send a return.
ALL
24 HOURS
R29
–
Corporate Customer
Advises Not Authorized
Originator must stop initiation of entries until
subsequent authorization has been obtained.
CCD, CTX
24 HOURS
2023 ACH Origination Guide
ACH Facts & ACH Originator Responsibilities
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Standard Entry Class (SEC) Codes
Standard
Entry Class
(Sec) Code
Title
Transaction Type
Account Type
Required
Agreement Or Authorization
Reference - NACHA
Operating Rules and
Guidelines
(Rules)
PPD
Prearranged
Payment and
Deposit
Credit or Debit
Single or Recurring Entry
Consumer
In writing and signed
for Debits.
Orally or other written
or non- written means
for Credits.
Section V - Chapter 45
CCD
Corporate Credit
or Debit Entry
Credit or Debit
Single Recurring Entry
Non-Consumer
Agreement between
Originator and
Receiver
Section V - Chapter 39
ARC
Accounts
Receivable Entry
Debit Single Entry
Consumer or
Non-Consumer
Written Notice
Section V - Chapter 37
BOC
Back Office
Conversion
Entry
Debit Single Entry
Consumer or
Non-Consumer
Posted Notice and Written
Notice
Section V - Chapter 38
CIE
Customer
Initiated Entry
Credit Single Entry
Consumer
Originated
Agreement between
Originator and
Receiver
Section V - Chapter 40
CTX
Corporate Trade
Exchange
Credit or Debit
Single or Recurring Entry
Non-Consumer
Agreement between
Originator and
Receiver
Section V - Chapter 39
POP
Point-of-Purchase
Entry
Debit Single Entry
Consumer or
Non-Consumer
Posted Notice and in
writing and signed or
similarly authenticated
Section V - Chapter 44
POS
Point-of-Sale
Entry
Debit Single Entry
Consumer
In writing and signed or
similarly authenticated
Section I - Chapter 1
RCK
Re-presented
Check Entry
Debit Single Entry
Consumer
Posted Notice
Section V - Chapter 46
TEL
Telephone-
Initiated Entry
Debit
Single or Recurring Entry
Consumer
Orally authorized
over telephone
Section V - Chapter 47
WEB
Internet-
Initiated/Mobile
Entry
Debit
Single or Recurring Entry
Consumer
In writing and signed or
similarly authenticated
Section V - Chapter 48
Proper Use of SEC Code
The ODFI warrants that every transaction complies with the Rules. Specifically, Subsection 2.4.1.2:
The Entry Complies with The Rules, and states “The Entry Complies with these Rules, including the use
of the proper Standard Entry Class Code.” Another major concern is that these entries may be returned
for an extended period of time, typically not afforded CCD or CTX entries posting to non-consumer
accounts.
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ACH Facts & ACH Originator Responsibilities
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What are the Fraud Risks for ACH?
ACH Origination fraud is a challenge for Financial Institutions and ACH Originators like your
company. In one
origination system hacking scheme, perpetrators hack into the originator’s (your
company) compute
r system using compromised User
IDs and passwords and originate ACH credits to
“mule” accounts created for the express purpose of committing fraud. Those accounts are then emptied
and abandoned. The true originator’s account (your account)
is debited for the invalid origination file. The
credits are usually irretrievable by the time the fraud is discovered. The
originator’s credentials may have
been compromised by an insider within the organization or stolen through key
loggers or Trojan Horse
programs on the compromised computer.
Due to the risk of this type of fraud, it is essential that all computer equipment used by your company to operate
American National Bank
’s
Cash Management ACH Origination program is regularly updated and
patched for security vulnerabilities (including the use of and updating of firewall, virus protection, anti-
malware protection, anti-spam protection.) You may also want to consider having one computer in your
office which is not used to browse the internet or read e-mail to be your sole source of access to the
Cash Management system. Limiting access to the computer which is used to house and transmit ACH
data may help avoid the accidental downloading of harmful programs/viruses that could potentially
compromise your transactions.
The appropriate steps should
be taken within your company to ensure that all User ID’s, Passwords,
Auth
entication Methods and any other applicable security procedures issued to your employees are
protected and kept confidential. All staff should be aware of the need for proper user security, password
controls and separation of duties.
As ACH Origination is a higher risk commercial banking function, we suggest that your company perform
your own internal risk assessment and controls evaluation periodically to be sure you are considering
all available security options.
For additional information on protecting your business from Internet fraud, please visit the U.S.
Chamber of
Commerce website and view the free link to the “Internet Security Essentials for Business”
handbook (https://www.uschamber.com/CybersecurityEssentials).
What types of controls are in place to help combat ACH Origination fraud?
The Bank’s ACH Origination system requires the use of a token which creates a random code to be
used in conjunction with your User ID and PIN. While this will hamper a hacker from gaining access
outside of your company, the risk still exists for internal fraud by one of your employees or from a
hacker who had gained access to your computer system through sophisticated key loggers or Trojan
Horse programs.
American National Bank (Bank) strongly encourages companies to have separation of duties for ACH
processing, in which one employee generates the ACH batch and the system requires a secondary
employee to log in and approve the ACH batch. Dual-approval procedures such as this go a long way in
preventing ACH origination fraud. If you don’t currently have the Dual-approval security feature in
place, you can request to enable it by contacting Bank’s Customer Service Department to discuss the
options available.
Cash Management ACH transaction rights are limited to personnel with appropriate business need for
functionality. Company ensures that all individuals with access to the Cash Management program received
training necessary to understand their responsibilities and utilize the program in accordance with the
applicable terms, agreements and ACH rules.
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It
is also very important for your company to make it a practice of monitoring your accounts online
daily. Reviewing both the balances and the account transaction daily within the Cash Management
system will ensure that you are aware of all transactions, even when they have not yet posted to your
account. The sooner account or ACH fraud can be detected, the more successful the bank will be in
assisting to recover your company’s potentially lost funds.
American National Bank has automatically enabled security alerts to send notifications when your
password has been changed, or when an outgoing ACH transaction has been generated.
Please keep in mind that we will
never
email you requesting your Cash Management password or token
credential. We may on occasion call to verify other information regarding your on line activity should
we see something of concern in your login patterns.
What happens if a Security Breach occurs?
Immediately contact the bank if you suspect an ACH data breach. As an ACH Originator, you are
required to immediately report the breach to BAC who must report it to NACHA.
ACH Rule Changes and Rules of Awareness
The National Automated Clearing House Association (NACHA) is the rule-making body governing
the ACH network and therefore all participants of the ACH network must comply with the NACHA
Operating Rules. Each company sending ACH entries through American National Bank using its Cash
Management ACH Origination program must comply with the NACHA Operating Rules as stated within
the ACH agreement between American National Bank and the Corporate Customer.
American National Bank will annually communicate applicable Operating Rules changes to ensure that
our companies are educated on those Rules and make any necessary changes to its daily process as a
result of these changes. Annually, you may purchase a copy of the updated NACHA Operating Rules
& Guidelines by visiting
www.nacha.org
or you may obtain free limited access to the basic NACHA
Operating Rules in a read-only format by visiting
www.achrulesonline.org.
✓ Micro -Entries, Phase 2
• Effective on March 17, 2023, The Micro-Entry Rule defines and standardizes practice and
formatting of Micro-Entries, which are used by some ACH Originators as a method of account
validation. Originators of Micro-Entries will be required to use commercially reasonable fraud
detection, including the monitoring of Micro-Entry forward and return volumes
✓ Increasing the Same Day ACH Limit to $1 Million
• Effective on March 18, 2022, This rule expands the capabilities of Same Day ACH. The
Increasing the Same Day ACH Dollar Limit to $1 Million rule increased the per-transaction
dollar limit from $100,000 to $1,000,000. Both Same Day ACH credits and Same Day ACH
debits became eligible for same day processing up to $1,000,000 per transaction.
2023 ACH Origination Guide
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✓ Micro-Entries, Phase 1
• Effective on September 16, 2022, Phase 1 of the Micro-Entries rule defined “Micro-Entries” as a
term and type of payment within the Rules. Upon implementation, Originators of Micro-Entries
were required to use “ACCTVERIFY’ as a standard Company Entry Description and populate the
Company Entry Name field with the same or similar name to be used in future entries. Originators
using debit entry offsets must send the debit and corresponding credit Micro-Entries simultaneously
for settlement at the same time. The rule also requires that the total amount of the credit Micro-
Entry (ies) must be equal or greater than the value of the debit Micro-Entry(ies) and that the
aggregate total of debits and credits cannot result in a net debit to the Receiver. The use of Micro-
Entries requires the Receiver to complete a verification process with the Originator prior to the
transmission of live entries.
Additional guidance and FAQs are available on:
https://www.nacha.org/rules/supplementing-data-security-requirements
Right to Audit / NACHA Enforcement Authority
Upon written request, American National Bank shall have the right to examine your ACH Operations to
ensure that ACH data is being processed correctly and that processing is adequate to meet the terms of our
agreement and all NACHA Operating Rules. American National Bank may voluntarily provide to
NACHA, information such as return data that may be indicative of a potential Rules violation by any of
our customers.
If you have any questions relating to ACH Origination Rules, please contact American National Bank
Electronic Banking Department at: (954) 267-8101.
