NACHA rules on Net ACH
HERNDON, Va. - Comp-anies may now originate Automated Clearing House Network debits that have been authorized by consumers over the Internet thanks to new NACHA operating rules that recently became effective. The new operating rules define the rights and liabilities of all parties to Internet initiated ACH payments while addressing the safety and soundness requirements of the payments system. By creating a new ACH transaction code-WEB-which specifically identifies consumer ACH debit transactions authorized over the Internet, companies and financial institutions are better able to manage risks unique to the Internet. NACHA has issued "Understanding Internet-Initiated ACH Debits," a guide which will provide Internet merchants the basics in ACH rules applicable to WEB entries, an understanding of the rationale behind the new rules, and best practices/practical advice for complying with the rules.