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Did You Know?

NACHA Rules Outline WEB Requirements

The number of U.S. adults who go online is steadily increasing, with more than 172 million online, up five percent from 164 million in 2005, according to a new poll from Harris Interactive. That represents about 77 percent of U.S. adults, up from 74 percent in 2005.
-Internet Retailer

No doubt about it, there is increasing consumer comfort with the Internet as a tool for work, education, entertainment and shopping. Offering your customers a way to make purchases online can increase your business. According to the Global Check Forum, two-thirds of the ACH Network volume growth came from echecks.

If you are currently offering WEB (ACH transactions initiated online), or are considering adding Internet-initiated transactions, it’s important to understand the Rules and your responsibilities. Here are just a few of the notable requirements spelled out by NACHA:

  • Only consumers may use WEB transactions -- corporate transactions are currently not permitted;
  • Commercially reasonable methods of authentication to verify the identity of the receiver (your customer) and to verify the bank routing number provided by the customer must be employed;
  • A commercially reasonable fraud detection system to screen each entry is employed;
  • The authorization must be signed or similarly authenticated;
  • You must provide an electronic or hard copy of the authorization for all debit entries to be initiated to a consume account;
  • An annual security audit is required.

ACH Direct strongly recommends that you take advantage of the resources available to help you gain the insight you need to stay compliant when using WEB:

  • 2006 ACH Rules: pages OR 10-11, 16, 39; pages OG 205-212;
  • Understanding Internet-Initiated ACH Debits: a brand new guide published by NACHA in 2006, this book is a comprehensive, “plain English” resource for companies and is available at http://pubs.nacha.org/internet.html.

Also, mark your calendars for Tuesday, July 18. ACH Direct is hosting a FREE educational teleseminar on WEB Authorization. The content will be developed and delivered by an Accredited ACH Professional from SWACHA. To register, visit ACH Direct's Web site.

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