Nacha's WEB Debit Account Validation Rule

3/11/2022

Nacha’s WEB Debit Account Validation Rule requires ACH originators of WEB debit entries to implement a commercially reasonable method to determine that the account number to be used for a WEB debit entry is for a valid account. This means the account to be debited is a legitimate, open account to which ACH entries may be posted at the receiving depository financial institution. The requirement applies to the first use of an account number or changes to the account number.

The rule is neutral regarding specific methods or technologies used to validate first-use consumer account information. Example methods to validate an account may include but are not limited to, the use of an ACH prenotification entry, ACH micro-transaction verification or the use of a commercially available validation service.

Rule Effective Date

The rule became effective on March 19, 2021 – however, if the originator was working in good faith towards compliance, Nacha would not enforce the rule for an additional period of one (1) year.  Effective March 19, 2022, the rule becomes enforceable, which means Nacha could impose fines/penalties for non-compliance. 

Impact to Participants

Originators

Originators of WEB debits may need to re-tool their ACH fraud detection systems to comply with the rule. Those originators of WEB debits that do not currently perform any fraud detection need to implement a system to do so.

RDFIs

RDFIs may receive a greater volume of ACH prenotification, micro-transactions or other account validation requests.

Questions? 

For more information, you can 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 paymentadvisors@saltmarshcpa.com or a member of our Financial Institutions Team and we will gladly help!

About the Bank Advisors

The Bank Advisors at Saltmarsh have provided audit, tax and consulting services to a wide range of financial institutions since our founding in 1944, making it the firm’s largest specialty practice and industry of focus. Our Financial Institution Advisory Group has the talent, expertise and insight to help you and your institution thrive. Our team members are also industry leaders who have the knowledge and experience to provide you with unparalleled service and guidance.


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