Nacha's Meaningful Modernization Rule 5 - Written Statement of Unauthorized Debit via Electronic or Oral Methods Rule

9/10/2021 - By Janice Weisz, AAP

The current Rules state that an RDFI is responsible for obtaining a consumer’s Written Statement of Unauthorized Debit (WSUD) prior to returning a debit as unauthorized. However, the current rules do not explicitly address electronically or orally provided WSUDs. Instead, the rules explicitly allow electronic records and electronic signatures generally, which has resulted in confusion about the electronic or oral acceptance of WSUDs. Evidence suggests that the significant majority of WSUDs are still being obtained via paper using a wet signature.

Rule Overview

The Written Statement of Unauthorized Debit via Electronic or Oral Methods Rule will reduce an administrative burden on RDFIs and their customers. The Rule clarifies and makes explicit that an RDFI may obtain a consumer’s WSUD as an electronic record, and an RDFI may accept a consumer’s electronic signature, regardless of its form or the method used to obtain it. These changes will emphasize that WSUDs may be obtained and signed electronically, which could include the same methods permissible for obtaining a consumer debit authorization.

Impact to Participants


ODFIs should prepare to receive WSUDs in various formats.


RDFIs that want to take advantage of accepting WSUDs by electronic and oral forms will need to incorporate new procedures and technology. These RDFIs will need to be able to meet the requirement to provide a copy of the WSUD upon request.



For more information, you can also visit Nacha's website.

Staying in compliance can be challenging, if you have any questions or need assistance preparing for these new Nacha Rules, email me or a member of our Financial Institutions Team so we can help.  

About the Author | Janice Weisz, AAP

Janice is a consultant in the Financial Institution Advisory Group at Saltmarsh, Cleaveland & Gund. Janice has been working with financial institutions since 2001 with an emphasis on operations, compliance, audit and internal controls. Janice currently is an Accredited ACH Professional (AAP) and conducts risk-based Nacha compliance audits and provides ACH-consulting services to the firm’s financial institution industry clients.

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