Breaking News

NACHA Membership Approves Company Name Identification Rule

Rule Will Become Effective June 20, 2008

On January 24, 2008 the voting membership of NACHA approved the Company Name Identification Rule as an amendment to the NACHA Operating Rules. The Company Name Identification Rule is a component of NACHA's comprehensive risk management strategy for the ACH Network. It is the second component of the strategy to be voted on by the NACHA membership for inclusion in the Rules. The Rule is intended to enable Receivers to more readily identify Originators and other parties that are the sources of ACH transactions. The Rule will improve ACH Network quality by educing the number of entries that are unrecognized by Receivers and require investigation and exception handling by RDFIs.

Specifically, this rule will:

• Require an Originator to identify itself within the Company Name field of the ACH record by the name that is known and readily recognized by the consumer
• Provide that for a transaction in which the Originator is not the ultimate payee or payor of the ACH entry, the payee or payor is the company that should be clearly identified in the Company Name Field
• Clarify and provide additional guidance on Company Name requirements for specific SEC Codes

NACHA voters have been forwarded the customary report of votes and comments that follow the close of every NACHA Operating Rules ballot.

IMPLEMENTATION
The Rule will become effective June 20, 2008.