ACH Origination - The Rules for Setting Exposure Limits

Why Should You Attend:

As an ODFI (Originating Depository Financial Institution), are you prepared to manage the credit risk in the ACH Network? Does your financial institution have effective exposure limits for each of your business customers who originate ACH entries as required by both the NACHA Operating Rules and the FFIEC guidance to cover that risk?

This webinar will offer attendees an understanding of the different business customers who are your Originators, Third Party Senders, the credit risk associated with ACH Origination, and the required exposure limits.

Learning Objectives:

• Define Originators and Third Party Senders
• Review criteria needed to evaluate Originators and perform proper due diligence
• Describe details on the different types of ACH risk – focus being on credit risk for purposes of setting exposure limits
• Outline the rules and evaluation process for setting exposure limits for all Originators
• Overview of FFIEC guidance regarding risk in the ACH network
• Define account takeover and provide tips on how to detect and help prevent this from happening to your corporate customer

Areas Covered in the Webinar:

• Identifying the different business customers who are your originators
• Definition of third party senders – how to determine if you’re using one?
• Details on how credit risk is associated with ACH Origination
• Outline of the rules relating to required exposure limits
• List of the criteria needed to evaluate your Originators and set appropriate exposure limits
• Provide information on handling over-limit file activity
• Review of the required monitoring of Originators and details what to monitor
• Overview of how to detect account takeover and potentially help prevent this from happening

Who Will Benefit:

• Risk/compliance staff
• Operations personnel
• Treasury management
• Credit risk managers
• Loan officers
• Accredited ACH professionals
• ACH operations staff
• ACH auditors
• AAPs (Accredited ACH Professional)

Donna K Olheiser
VP of Education, Dynamic Mastership

Donna K Olheiser has over 24 years of experience in the financial services industry which includes 9 years' experience 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, Ms. Olheiser spent 14 years in various departments with the Federal Reserve Bank of Minneapolis and also holds the Accredited ACH Professional (AAP) designation.

Her extensive knowledge, enthusiasm and passion for transferring payment processing knowledge using the adult learning theory is remarkable and has helped many payment professionals perform daily operational tasks including exception processing while remaining compliant with the NACHA Operating Rules. She uses scenarios and examples to bring the learning home, easy to comprehend and apply to life day-to-day ACH processing. Her ability to engage the learner through the entire training event helps the adult learner apply what they've learned during each training session.

Topic Background:

As there continues to be an increasing movement toward an electronic, interconnected and mobile infrastructure, it’s critical that electronic payments work safely and efficiently for all users, including the ACH network. According to NACHA’s reports, in Q1 2016, the ACH network transferred more than 5 billion direct deposits and direct payments – the first time ACH volume has exceeded this milestone in a single quarter - growing 6.1 percent over Q1 2015. The total dollar value transferred over the network grew to more than $10.6 trillion, marking an increase of 4.5 percent over last year. Consistent with recent ACH network volume trends, native electronic payments continue to rise, in this quarter by 7.8%. These transactions, which start as electronic, now make up 91 percent of overall ACH network volume. Please note, increases in native electronic transactions can be attributed to significant gains in WEB and business-to-business payment categories.

Follow us :