When you choose the Federal Reserve’s FedACH Services to process your automated clearing house (ACH) transactions, you enable a whole host of value-added information services that transform raw data into valuable information to help you manage your ACH business and meet your compliance obligations. The questions and tips listed below illustrate how our FedACH Information Services tools match up with some of the NACHA® rules and guidelines established for effective risk management.
Q: Does your institution want to monitor originators’ or third-party senders’ origination activity across multiple settlement dates or network connections?
Q: Does your institution want to monitor exposure limits for originators of WEB entries?
Q: Does your institution want help complying with the NACHA rule associated with providing originators with notification of change (NOC) information?
Q: Does your institution want to respond to receivers’ requests for payment addenda electronic data interchange (EDI) information?
Q: Does your institution want to help its ACH operations area know when to initiate the requirements associated with the death of a receiver of federal government benefit payments?
Q: Does your institution want help understanding, and providing originators with, information associated with returned items?
Q: Does your institution want help meeting the NACHA rules requirement associated with monitoring originators’ return rates, sometimes referred to as the one percent returns rule?
Q: Does your institution want help identifying international ACH transactions (IAT) in order to comply with OFAC requirements associated with these transactions?
While NACHA may develop the most specific ACH monitoring rules and guidelines, its directives are not the only drivers behind the need for information on ACH transactions.
Would your institution like to receive automatic alerts if a large WEB debit is coming into a receiver’s account? How about if a corporate customer is anxiously awaiting a payment and would like notification of its receipt? What if a debit carrying an erroneous extra zero will impact your end-of-day position or your Fed account? If you answered yes to any of these questions, the informational notification criteria that can be established with the FedACH Risk RDFI Alert Service is for you.
How about information your board of directors wants to see? The FedPayments Reporter Service Routing Number Activity Report might help with that. It provides the most recent month and year-to-date summary level information for originated and/or received transactions processed via FedACH Services for the specified ABA.
What about auditors? Do you ever struggle to respond to their requests for information? Many of the reports discussed above may help verify the strength of your risk management efforts. And, even if you have not set up all the useful FedPayments Reporter Service reports to be generated on an automated basis, you can create most reports on an ad hoc basis to answer that occasional auditor question.
Be prepared. Let the value-added capabilities of FedACH Information Services help provide you with compliance power. Find out more today by visiting the FedACH section of FRBservices.org or use the My FedDirectory® Service to find contacts, such as account executives and FedACH sales specialists, specific to your institution.
"NACHA" is a registered trademark of NACHA—The Electronic Payments Association.
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