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

9/10/2021

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

ODFIs should prepare to receive WSUDs in various formats.

RDFIs

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.

Questions?

Staying in compliance can be challenging, so if you have any questions or need assistance, email paymentadvisors@saltmarshcpa.com or a member of our Financial Institutions Team so we can help.

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