Over the last few months you probably heard these numbers - perhaps at Payment Systems Update, maybe on a webinar or in the 2015 ACH Rules Revisions. Technically, they all become the magic number on September 18, 2015. But, what does that mean to you? It means the Overall Return Threshold (15%), the Administrative Return Threshold (3%) and the Unauthorized Return Rate Level (0.5%) are all going into effect. The unauthorized return rate level which has been at 1% for the past few years is being lowered to 0.5%. These numbers are all based on each Originator and not on your financial institutions overall origination. There are two different ways to calculate the rates according to The Rules and your financial institution can use either or both.
What else does this mean? You need to begin figuring out how your institution will monitor the activity of your originators so that you will be able to appropriately respond within the 10 business days if you receive a notification from NACHA.
These numbers are not really magic, but to ensure you’re in compliance with the ACH Rules it is in your institution’s best interest to look into your box of tricks (Origination) to see if the rabbit is where it is supposed to be.