![]() Recourse for improper reversals will be able to be handled through the ACH return process. The ability for RDFIs to return improper reversals will become more efficient. Originators, Third-Party Senders, and ODFIs have a clearer and more consistent understanding of when NOT to initiate reversals i n particular, with regard to the failure to fund an ACH credit file. In addition, the Rule expressly authorizes Nacha to report Class 3 Rules violations to the ACH Operators and industry regulators. The sanction for a Class 3 violation can be up to $500,000 per occurrence and a directive to the ODFI to suspend the Originator or Third-Party Sender The Rule also allows the ACH Rules Enforcement Panel to determine whether a violation is egregious, and to classify an Egregious Violation as a Class 2 or 3 Rules Violation. Involves at least 500 Entries, or involves multiple Entries in the aggregate amount of at least $500K. This Rule defines an Egregious Violation as: R17 for non-consumer accounts, 2-day return timeframeĪn RDFI will be permitted to use R17 to return an improper Reversal that it identifies on its own (i.e., not based on a customer contact), 2-day return timeframe R11 for consumer accounts, 60-day return timeframe upon receiving a consumer claim In addition, the rules explicitly permit an RDFI to return an improper Reversal: This is the same approach as the formatting requirements for Reinitiated Entries The contents of other fields may be modified only to the extent necessary to facilitate proper processing of the reversal The Company ID, SEC Code, and Amount fields of the reversal must be identical to the original entry The Rule establishes formatting requirements for reversals, beyond the current standardized use of the Company Entry Description field (“REVERSAL”): ![]() It expands the permissible reasons for a reversal to include a “wrong date” error – 1) the reversal of a debit Entry that was for a date earlier than intended by the Originator, or 2) a credit Entry that was for a date later than intended by the Originator. ![]() This Rule explicitly address improper uses of reversals.
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