Blogs

Understanding the 2024 ACH Rules Update for Corporate Originators and Third-Party Senders

By Hoot-E
In 2024, several significant amendments to the ACH Rules will take effect, impacting the way companies process ACH payments. It's essential for corporate Originators and Third-Party Senders to understand these changes to ensure compliance and efficiency in their payment processing operations. Notifications of Change One of the key updates impacts Notifications of Change (NOCs), effective starting June 21, 2024. Under this amendment, if the account information provided by a payee is erroneous or outdated, their financial institution may manually process the payment and send an NOC to the initiator. Corporate Originators need to update the information ...
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Ask Hoot-E: Benefits of Card Controls for Debit Cards

By Hoot-E
Special thanks to @Trevor Witchey , AAP, NCP, Senior Director, Payments Education for helping me write this blog! In just the past ten years, the number of Suspicious Activity Reports (SARs) filed for credit and debit cards has more than tripled while most financial institutions are seeing increased Regulation E write-offs from debit card fraud claims. In response to increased fraud, financial institutions are looking for solutions to reduce or mitigate fraud events among cardholders. This can be a challenge, as most account holders ...
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Upcoming ACH Rules Updates: What and Why

By Emily Nelson
The day everyone in the payments industry has been waiting for finally came! New ACH Rules updates were finally approved on March 18, 2024. The approved set of Rules is intended to reduce incidences of fraud, with many Rules specifically focused on reducing credit-push fraud. In May 2023, Nacha presented a Request for Comment (RFC) which contained nine proposals. Each of the proposals contained aspects of risk management and aimed to reduce the amount of successful fraud while also improving the recovery of funds within the ACH Network. Much of the focus related to credit-push fraud is due to the focus of fraudsters changing their tactics. ...
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Significant Third-Party Sender Audit Findings in 2023

By Matthew Wade
The ACH Rules require Third-Party Service Providers (TPSPs), which include Third-Party Senders (TPS), to perform an annual ACH compliance audit. The number of TPSP/TPS audits performed by EPCOR continues to trend upward year after year, and has included a wide range of organizations, including payroll servicers, healthcare payment providers, bill pay providers, banking platform providers and various other types of payment intermediaries. Across the spectrum of TPSPs that EPCOR audits, there are several audit findings that our team frequently sees during those engagements. Let’s talk about the more common, and significant, audit issues we observed during ...
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Nacha Announces 15 New ACH Rules Changes

By Hoot-E
On March 15, 2024, Nacha passed 15 new ACH Rules changes surrounding ACH risk management, specifically targeted at reducing the incidence of successful fraud and improving the recovery of funds. The following ACH Rules changes with significant impact take effect between October 1, 2024 to June 19, 2026: Fraud Monitoring by Originators, TPSPs and ODFIs Effective Dates - Phase 1: March 20, 2026 for all ODFIs and non-Consumer Originators, TPSPs and TPSs with annual ACH origination volume of 6 million or greater in 2023. Phase 2: June 19, 2026 for all other non-Consumer Originators, TPSP and TPS. Require each non-Consumer ...
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Ask Hoot-E: Originators' Misuse of SEC Codes

By Hoot-E
Special thanks to @Trista Woolston , AAP, APRP, Audit Services Manager for helping me write this blog! Originators play a crucial role in initiating transactions, making it essential for organizations to have strict parameters in place. These parameters specify exposure limits and approved Standard Entry Class (SEC) codes for each Originator. But have you ever wondered if the proper SEC code is being initiated for consumer and non-consumer accounts? Let’s explore the importance of ensuring the correct use of SEC codes ...
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Protecting Businesses from Point-of-Sale (POS) Fraud

By Hoot-E
In the hustle of managing a business, it's easy to focus solely on providing excellent service to customers. However, in today's digital age, being aware of potential threats is just as important as delivering top-notch service. Business owners need to be aware of the potential for fraud attacks directed toward their Point-of-Sale (POS) system. Whether they use a cash register, in-person POS terminal at a storefront or online POS platform for their website, fraudsters are lurking in the shadows waiting for the right opportunity to exploit vulnerabilities. Understanding POS Fraud POS fraud occurs when criminals exploit vulnerabilities in payment ...
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Meet Myranda Brown

By Hoot-E
We’re so excited to share that @Myranda Brown has joined our flock! Myranda comes to us with a bachelor’s degree in business administration – management from Southeast Missouri State University. Before joining EPCOR, Myranda worked for Enterprise Bank & Trust in ACH Compliance for about a year. She explained, “Prior to that, I was the Lead Deposit Operations Specialist in Deposit Operations at MRV Banks where I learned most of my payments knowledge. MRV is where I learned that I really enjoyed ACH and all the aspects of it!” Regarding her new position, Myranda says: “I am really excited to start learning and expanding my knowledge on payments. I ...
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Meet Casey Demma

By Hoot-E
We’re excited to announce that @Casey Demma , AAP has joined our flock! Casey lives in Covington, LA, and has a bachelor’s degree in business administration with a concentration in marketing. She shared, “After college, I went into banking, moved on to work in a marketing-related position, but found my way back in banking after moving out of New Orleans. This led me to work in the banking department at a payroll company and, eventually, I found EPCOR!” Regarding her new position, Casey says: “I am most excited about working with such passionate people! Everyone really seems to love payments and what they do, and I cannot wait to learn from such a great ...
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Welcome to Our 10 New Members! 🎉

By Hoot-E
We have welcomed an additional 10 new members into the EPCOR family! Please join us in welcoming the following: Allied National in Overland Park, KS Bannockburn Global Forex in Saint Louis, MO Berkshire Hathaway Energy in Davenport, IA Cogent Law Group LLC in Washington, D.C. Community Partners Savings Bank in Salem, IL Genesis Employees CU in Zanesville, OH Great Erie FCU in Orchard Park, NY LPL Financial in Fort Mill, SC OrboGraph in Burlington, MA The Victory Bankin Limerick, PA
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Altered vs. Counterfeit Checks in an Image Environment

By Marcy Cauthon
Check fraud continues to rise, as fraudsters have become increasingly profitable by utilizing this old form of payment. Whether it’s stealing a check from the U.S. mail and altering the check or using authentic check stock to create counterfeit checks, this problem has become quite a headache for financial institutions. And while financial institutions may understand the check warranties they hold, determining whether a check was altered or is counterfeit has become difficult in today’s image environment. Here is the scenario our members saw time and time again in 2023: XYZ Copiers issues check #6125 in the amount of $850 to B & B Printers ...
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The ACH Management Policy for Third-Party Senders

By Amy Donaghue
A Third-Party Sender (TPS) has specific ACH Rules obligations, including the requirement to implement an ACH Risk Management Program. An effective ACH Risk Management Program typically begins with the development and implementation of a formal ACH policy demonstrating a Third-Party Sender’s understanding of its role in the ACH Network and the risks involved with its activities by addressing key ACH Rules obligations of the TPS. Additionally, this policy provides statements, rules or assertions that specify the expected behavior of an organization by defining roles and responsibilities of staff and departments as well as conditions and requirements for products, ...
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Common Tax Refund Questions

By Stephanie Mareski
Each year, we hear from our member financial institutions about the challenges they face with incoming tax refunds that force them to juggle compliance and client/member service. Let’s look at some of the most common questions and the Rules -based answers you can rely on to protect your clients and institution. What if the name on the Entry doesn’t match the name of the account holder? According to ACH Rules Section 3.1.2 , a financial institution is not required to match an account name with the transaction being posted to the account. The Green Book echoes this Rule on page 1-8. ...
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It’s a Paymentspalooza and You’re Invited!

By Shirley James
As your payments association, everything EPCOR do es is to help you and your organization solve your payments challenges and discover new opportunities within the payments industry. We identify and explain trends in the payments space, share best practices and solutions, identify any gaps that need to be addressed and craft education, resources and professional development training around those gaps to meet your needs. We take our job as your PA seriously , knowing that you look to us as experts on various payment systems and how they operate . ...
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Ask Hoot-E: ACH Rules Updates in 2024

By Hoot-E
Special thanks to @Trevor Witchey , AAP, NCP, Senior Director, Payments Education for helping me write this blog! In May 2023, Nacha issued a Request for Comment (RFC) with proposed ACH Rules changes. Since then, everyone has been wondering if or when any official amendments to the ACH Rules will be announced with a schedule of implantation. But, as of right now, nothing has been made public. Nacha also issued a Request for Information (RFI), which is just an inquiry on several topics for financial institutions to consider in the ...
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Four Things to Know About Faster and Instant Payments

By Sharon Hallmark
Consumers and businesses are increasingly using payment platforms that allow them to pay or transfer money faster than ever before. Perhaps nothing demonstrates the growing interest in faster payments as clearly as the numbers. The majority of U.S. businesses (83%) and consumers (75%) are already using faster payments, and most (66% of businesses and 61% of consumers) say they are likely to use faster payments more often in the future, according to studies released in 2023 by the Federal Reserve. Demand continues to grow, and consumers are looking for ways to meet these needs. What does your financial institution need to know about these types of payments? ...
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Protecting Your Identity: A Crucial Guide to Safeguarding Your Personal Information

By Hoot-E
In today's digital age, where technology permeates nearly every aspect of our lives, the threat of identity theft looms larger than ever before. Did you know that more than 40 million U.S. consumers fell victim to some form of identity theft in 2021 alone? Shockingly, according to Javelin's research, traditional identity fraud losses surged to a staggering $24 billion in 2021, marking a disturbing 79% increase over the previous year. When combined with losses from scams where individuals unwittingly provide personal information, the total losses soared to a staggering $52 billion. Identity theft occurs when someone unlawfully uses your personally identifiable ...
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Meet MacKenzie Bozarth

By Hoot-E
We are so excited to share the newest face in our flock – @MacKenzie Bozarth ! MacKenzie is a Kansas City, MO resident and comes to us with 20+ years of experience working for various banks and other organizations. She explained, “Before becoming an Executive Assistant, I worked in various departments (front desk, deposit operations, loan department, lending assistant, etc.) at a local Kansas City bank. I was eager to learn all I could about the different areas to gain as much knowledge as possible that would then help me reach the goal of becoming an Executive Assistant.” Regarding her new position at EPCOR, MacKenzie says: “I am most ...
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2023 Review of Suspicious Activity Reporting

By Trevor Witchey
As is usual this time of year, many organizations are sharing information and finalized data for 2023. Recently, the Financial Crimes Enforcement Network (FinCEN) of the United States Treasury updated its Suspicious Activity Report (SAR) data through the end of 2023. Let’s walk through everything we’ve learned from the data. Payment types rank for 2023: Checks – 528,864 SARs filed. Credit/Debit Cards – 299,935 SARs filed. ACH – 199,939 SARs filed. Wires – 97,865 SARs filed. Writing an Effective Suspicious Activity Report When it comes to our Did You Know videos, our Writing an Effective ...
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ACH Positive Pay Risks

By Jennifer Kline
Positive pay has been a hot topic lately, leading to many members seeking our advice. So, let’s talk about it. First, what is it? Positive pay is a value-added service providing fraud detection or prevention tools for better management of business accounts. Positive pay services can be used to automatically match and approve or deny ACH Entries posting to business accounts. With positive pay, clients provide their financial institution with details about what payments are approved for payment. The details will include the payee/originating company and company identification, SEC codes, transaction types and maximum dollar amounts. The positive ...
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