ACH Return Rate Monitoring By Originator Flashcards
Who creates ACH origination entries?
ACH origination entries are created by clients and other departments of the bank.
What role do Treasury Management Operations and Treasury Management Sales play in ACH reporting?
They assist with client escalations.
What happens if there is a violation of Nacha Rules?
Loss Prevention will immediately escalate any violations of Nacha Rules to the appropriate business unit and follow up on the action taken.
Where are incoming ACH returns recorded?
ACH Origination Log
What action does the Loss Prevention Specialist take if unusual or late returns are found?
They notify a Loss Prevention Supervisor and, if necessary, sends an email notification to ACH Origination or the Business Unit.
What is the Loss Prevention Manager responsible for during the weekly review of the ACH Origination Log?
Reviews the ACH Origination Log to ensure no dates are missing and that the proper escalations have been made for unusual or late returns. The Manager then enters initials and the date on the log as evidence of the review
What does Loss Prevention do during the Monthly Review of ACH Data?
They input ACH totals into the Monthly Business Report template, reviews its graphs for originations and returns, identifies anomalies, and adds comments for the monthly report.
Where can the ACH totals be found for the Monthly review?
In the Monthly Business Report (MBR)
What should Loss Prevention do after entering ACH Data into the MBR template?
They should update the pivot tables to generate the graphs and review them for anomalies. If applicable, they should research and add comments.
How are unusual ACH return totals researched during the monthly reviews?
They are researched using the ACH Origination Log.
How are the unusual ACH origination totals researched during the monthly review?
They are researched using the ACH history for D1B.
What is Nacha’s threshold for identifying high debit return rates for Unauthorized Returns?
0.5% or greater
R05
R07
R10
R29
R51
What is Nacha’s threshold for identifying high debit return rates for Admin Returns?
3% or greater
R02
R03
R04
What is Nacha’s threshold for identifying high debit return rates for Overall Returns?
15% or greater
All Codes
What thresholds are used for escalation purposes in the Dec 2023/Jan 2024 report?
- Unauthorized Returns: 0.5% or greater and count > 5
- Admin Returns; % or greater and count > 10
- Overall Returns: 15% or greater and count > 20
How are first time offenders handled in the escalation process?
Loss Prevention notifies the account officer for awareness and client outreach/education.
What happens with repeat or egregious offenders
Are escalated to the account officer with recommended actions, which may include removing the originator from ACH services. Action taken is logged on the ACH Monitoring Monthly Report.
Where are escalations logged?
ACH Escalation Tracking Log
What should be done for repeat or serious offenders of ACH returns?
Send an email to the account officer with the ACH Originator’s info, time frame of the issue, and ask for correction action within 10 business days.
How can a customer reduce their ACH returns after being notified?
Customers must create a plan to reduce their ACH returns under the limits within the next 30 days.
What happens if the originator does not fix the issue or respond to the action plan?
The originator moves to the “High Risk Originator” process.
How long should follow-up monitoring continue for customers with excessive returns?
Monitor the customer for 6 months (180 days) to ensure their ACH returns stay below the limits.
