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A proposal by NACHA – The Electronic Payments Association to clarify rules regarding debit entry authorization, stop-payment orders, dishonor-of-return entries and expansion of account receivable entries would ensure consistency and help save time for ACH network participants, NAFCU said Friday.

NACHA, in a proposal to modify certain "pain points" in its rules, said the changes are intended to help prevent misunderstandings among network participants. The changes proposed, all backed by NAFCU, would:

• require authorization for a debit entry to a non-consumer account to be in writing or some other reproducible form, with the receiving institution allowed to request a copy and receive it within 10 days of that;
• add a Return Reason Code indicating that stop-payment orders apply to all future entries, limit use of a current stop-payment code to single entries and set a timeframe for honoring stop-payment orders by non-consumers;
• eliminate a two-part test for dishonor-of-return entries, with proof of loss no longer required to dishonor a return that is untimely; and
• revise the rules on accounts receivable entries to permit conversion of checks for bill payment at a manned station and permit conversion of checks received via a delivery service equivalent to the U.S. mail.

The proposal was issued in late June.