ACH Originator Operating Guidelines & Rules
An Originator is an entity sending a debit or credit entry through the Automated Clearing House (ACH) electronic network.
A Receiver is an account holder that authorizes an Originator to issue a debit or credit entry to the Receiver's account. The Originator must retain and provide the authorization to the Receiver upon request for the period of time designated in the Rules.
A Prenotification is an optional zero dollar ACH entry that precedes an actual debit or credit entry.
A Notification of Change (NOC) is sent to alert an Originator that previously valid information for a Receiver is incorrect or has become outdated.
If an Originator chooses to send a Prenotification, it must be dated at least six business days* prior to the origination of the first live entry. We will notify the Originator of a returned Prenotification in a timely manner and the Originator must stop or cancel the associated live entry.
We will report a Notification of Change (NOC) to an Originator within two business days* of receipt and action must be taken by the Originator to make the requested change to the account information within six business days* of NOC receipt or before initiating a subsequent entry, whichever is later.
We will notify an Originator of the return reason for any entry. Originators must not reinitiate an entry in excess of the authorized limit when the original entry has been returned as R01 - Insufficient Funds or R09 - Uncollected funds. Originators must stop initiating an entry unless authorization has been reinstated or corrective action has been taken for the following Return Codes:
- R05 – Unauthorized Debit to Consumer Account Using Corporate SEC Code
- R07 – Authorization Revoked by Customer
- R08 – Payment Stopped or Stop Payment on Item
- R10 – Customer Advises Not Authorized
- R29 – Corporate Customer Advises Not Authorized
Originators must transmit a reversing entry within five business days* of the original entry. No later than the settlement date of a reversing entry, an Originator must advise the Receiver when a reversing entry will be originated and the reason the original entry is being reversed.
ACH to a corporate account should use the SEC code of CCD or CTX and not PPD. PPD is for consumer accounts only.
Annually, we will email Originators a reminder to review these responsibilities. Changes or additions to the Rules may be reviewed by visiting the NACHA website HERE.
* A business day shall mean between the hours of 8AM and 5PM CST, Monday through Friday, excluding Federal Holidays (for a listing of Federal Holidays, click HERE).