Stop Payments vs. Unauthorized Entries - Compliance with NACHA rules

As an operations or front-line person, each day you struggle with the question – “When do I use a Stop Pay form and when do I need a Written Statement of Unauthorized Debit (WSUD)?” In the back room, processing these types of ACH transactions brings up the questions - “what is the Return Reason code, What is the timeframe to do a specific type of Return, and what documents do I need before processing this Entry?” This is your session!

The trainer in this session will provide examples of when to use which form: Stop Payment form OR WSUD (Written Statement of Unauthorized Debit) and why, plus tying this information back to the NACHA Operating Rules to ensure you are in compliance (exactly what your obligations and responsibilities are) each time you help your account holder with their request.

Included in this session will be details on the difference between using R10 and R11 when returning an Entry as unauthorized in the ACH network.

The exception processes involving Stop Payments and Unauthorized Entries present challenges every day. As a participant in the ACH network, you NEED to be aware of the differences and the Rules surrounding processing these payments while remaining in compliance with the Nacha Operating Rules.

The Nacha Operating Rules have specifics for you to follow to be sure you are complying each time you help your account holder with their request(s).

This session will make things more simplistic when processing unauthorized, authorization revoked, and stop payments!

• Determine the difference with Stop Payment for business accounts
• Help identify what form to use and in which situation
• What questions and conversations should be taking place between the account holder and the customer service or frontline staff working with them?
• Key points illustrated in the program in the form of case studies will assist customer service and front-line staff as well as identify details for operations staff

• Define the rules surrounding Stop Payments
• Identify differences in rules between consumer/non-consumer Stop Payment
• List tips that will help customer service and frontline staff ensure they are asking the right questions of the account holder
• Outline what an unauthorized transaction is and when to use a Written Statement of Unauthorized Debit (WSUD)
• Review timeframes for Stop Payments and Unauthorized Payments
• Define the NEW R11 Return Reason Code and the difference between R11 and R10
• Illustrate what constitutes an entry to be returned as Authorization Revoked vs. Stop Payment vs. Unauthorized
• Describe using scenarios – the what, when, and how of stopping payments and Returning Unauthorized Entries

For consumers, understanding when to use a stop payment versus reporting an unauthorized transaction is crucial for protecting their finances and rights. Clear communication channels with financial institutions and prompt reporting of issues are essential practices. On the other hand, financial institutions must have robust policies and procedures in place to handle both stop payments and unauthorized transactions efficiently and comply with relevant regulations.

Event Venue

Online