Bank on Wipfli - Blog and Podcast

 

It’s not what you know but who you know

Jul 23, 2020
By: Teresa Francis
Financial Institutions

We have all heard the saying, “It’s not what you know but who you know.” Sometimes the who you know can get you the what you need to know. Connecting to the correct person can often give you the answers you need and efficiently resolve issues.

In the electronic payments area, timely responses can help to avoid losses for your financial institution and your clients. Your ACH department needs to make decisions daily to resolve exception items, mitigate fraud situations and provide the best service for your clients.

When an issue arises, have you ever wished you could contact the best person to help you with a particular ACH transaction or situation for your clients? Have you been successful in reaching the other financial institution involved in the ACH transaction?

On January 14, 2020, the National Automated Clearing House Association (NACHA) issued a supplement to the ACH rules that added Section 1.14 to Article One and requires financial institutions to provide information for an ACH contact registry. The ACH contact registry will be a resource for financial institutions to get connected to the correct person or department responsible for ACH operations and fraud or risk management. Registration for the contact registry has been available since July 1, 2020, and all financial institutions will be required to register by October 30, 2020.

For employees in the deposit operations area, it has often been difficult to reach the correct individuals when one financial institution has issues with an ACH entry and needs to quickly resolve errors or curtail fraud.

The directory should improve communication between financial institutions and let everyone know the best resource and method for contact. NACHA is requiring financial institutions provide either the name, title, email address and phone number for at least one primary and one secondary contact person or the general department contact information including an email address and a working telephone number.

There is also a requirement to keep the information current and update the registration within 45 days following any change to the information previously provided and verify all registration information at least annually. Registration is completed through NACHA’s Risk Management Portal.

Compliance with this new ACH rule can expand the “who you know” and help you get the information you need in your daily operations. If you have additional questions on this ACH rule change, how to implement procedures related to the change or compliance with ACH rules, expand the “what you know” by contacting Wipfli to connect with the correct person to provide you with the answers you need.

Author(s)

Teresa Francis, CIA, AAP
Senior Manager, Internal Audit
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