Unauthorized Transactions - Reg E Vs Nacha Operating Rules
Donna K Olheiser Overview:
Details on the error resolution process, beginning with Reg E for consumer notification to the financial institution, the research time involved, and the timing of providing provisional credit. Included will be guidelines on the “what if” there is no error, the process with providing notice to consumer, and any overdraft protection relating to that provisional credit being reversed. The trainer will be outlining the ACH return process, when using the ACH network is appropriate, and paperwork/forms needed. Recent Rules changes affecting Nacha compliance when sending unauthorized ACH Returns using Return Reason Codes R10 vs. R11 is part of this discussion.
Why should you Attend:
As a financial institution, you have responsibilities and liabilities under Regulation E and the Nacha Operating Rules for your consumer accounts when there are unauthorized transactions to deal with and understanding the error resolution process will put you one step ahead.
Regulation E contains an error resolution process for electronic payments posting to consumer’s accounts. Returning Unauthorized ACH transactions and the logistics when doing so will be covered in detail, including the addition of a repurposed Return Reason Code R11 and when to use R10 vs R11.
This session will provide an opportunity for attendees to apply the basics of Regulation E and the error resolution timeframes while comparing with ACH processes when returning unauthorized transactions. all while remaining compliant with the Nacha Operating Rules. This process will be demonstrated in detail as the trainer walks attendees through some fictitious real-life scenarios.
Areas Covered in the Session:
- Timeframes for consumer when reporting errors to the financial institution
- Consumer liability and responsibility for unauthorized transactions
- Financial Institution liability and responsibility when handling errors to consumer accounts
- Identify what is covered by Regulation E and what is not covered
- List details on “What is an Error” in Reg E and the Nacha Operating Rules
- Define the Error Resolution Process including timeframes
- Outline the process when returning unauthorized transactions in the ACH network, including when to use R10 vs. R11 (due to recent Rules changes)
Who Will Benefit:
- Bank Operations Staff
- New Employees in the Payments Industry
- Bank Managers and Payment Professionals
- CEO's and CFO's
- Risk, Compliance and Audit Personnel
- Aspiring AAP's and Current AAP's for AAP CE Credits
Speaker Profile
Donna K Olheiser founded Dynamic Mastership, LLC in December 2014 to utilize her 24+ years’ experience in the financial services industry, by sharing her passion for training financial institutions and organizations on the Rules and processes for electronic payments (with her specialty being ACH payments). She holds the Accredited ACH Professional (AAP) designation (achieved in 2004).
Donna’s experience before founding Dynamic Mastership, includes 9 years’ serving as the Education Service Director at a Regional Payments Association (RPA), where she managed and facilitated the entire Education program for nearly 800 financial institution members. Prior to that, Donna spent 14 years with the Federal Reserve Bank of Minneapolis in various departments, where she started her training career as the Training and Development Specialist in 2003.
Donna is a certified Master Trainer who continually uses her extensive knowledge, experience, enthusiasm, and passion for transferring payment processing details, while using the adult learning theory is remarkable! Her training style has helped many payment professionals remain consistently informed of the NEW and ever-changing NACHA Operating Rules and explaining how the Rules apply when performing daily operational tasks including complex return and exception processing. She incorporates scenarios and examples in her detailed training, so the Rules are easy to comprehend and apply to real-life day-to-day ACH processing. Donna’s ability to engage the learner through the entire training event helps the adult learner apply what they have learned during and after each training session.