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

Course Description:

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 a payment, or (2) they revoked/cancelled 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 with 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!

Learning Objectives:

Each participant in the ACH Network is required to follow the Nacha Operating Rules and be compliant. There are several NEW amendments recently passed which 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)

Why Should You Attend?

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

Areas Covered in the Webinar:

  • 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

Who Will Benefit:

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

Our Speaker

Donna K Olheiser

Donna founded Dynamic Mastership, LLC in December 2014 in an effort to utilize her 24+ years’ experience in the financial services industry, by sharing her passion for training financial institutions and organizations on the Rules and processes for electronic payments (with her specialty being ACH payments). She holds the Accredited ACH Professional (AAP) designation (achieved in 2004). Donna’s experience before founding Dynamic Mastership, includes 9 years' serving 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, Donna spent 14 years with the Federal Reserve Bank of Minneapolis in various departments, where she started her training career as the Training and Development Specialist in 2003.

Donna is a certified Master Trainer who continually uses her extensive knowledge, experience, enthusiasm and passion for transferring payment processing details, while using the adult learning theory is remarkable! Her training style has helped many payment professionals remain consistently informed of the NEW and ever-changing NACHA Operating Rules and explaining how the Rules apply when performing daily operational tasks including complex return and exception processing. She incorporates scenarios and examples in her detailed training, so the Rules are easy to comprehend and apply to real-life day-to-day ACH processing. Donna's ability to engage the learner through the entire training event helps the adult learner apply what they've learned during and after each training session.

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