Nacha sought feedback on whether Nacha Rule changes are appropriate to modify the allocation of risk of loss where (i) an RDFI makes funds available from an ACH credit transfer prior to the settlement date, and (ii) an ODFI or Originator experience a loss because it is unable to recover funds from the RDFI. TCH’s comments reflected that while some member institutions support a rule change to re-allocate liability, others questioned whether a change is necessary or whether any limited benefits a rule change might bring are justified in light of potential unintended consequences or negative optics for the ACH network. For example, TCH noted that such a rule change could be perceived as discouraging innovation or slowing down funds availability to the consumers most in need of fast access to their funds.

Regardless of whether Nacha moves forward with a rule change on this topic, TCH encouraged Nacha to provide industry education regarding the risks and issues that providing early funds availability may raise for both ODFIs and RDFIs, especially as the practice of providing early funds availability expands in response to increasing demand by consumers for faster payments and quick access to funds.

To read the full comment letter click here.