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Ask Mary: What’s New for Payments in 2020?!

Dear Mary: The new year is coming faster than I realized! What do I need to have on my radar in 2020?!

It’s crazy to think that 2020 is less than a month away! While the twinkly lights, decorated trees and Hallmark movies are a nice distraction, you will be in for a rude awakening this time next month if you aren’t conscious of what’s to come. Here’s our top five things you need on your radar in 2020.

  1. Increase Dollar Limits for Same Day ACH Transactions – Effective March 20, 2020 the Same Day ACH dollar limit per transaction will increase from $25,000 to $100,000.
  2. Clarification for Unauthorized ACH Transactions – Effective April 1, 2020 the R10 return reason code will only be used for transactions that are truly unauthorized. Transactions that are the incorrect dollar amount, on a date other than agreed upon, part of an incomplete transaction or are improper/ineligible will be returned using the R11 return reason code. This also means a special bonus of updating your Written Statement of Unauthorized Debit (hint – just use ours).
  3. More Funds Availability – Based on the requirements of Dodd-Frank the Consumer Financial Protection Bureau (CFPB) and the Federal Reserve are required to evaluate Funds Availability on Deposits every five years. Based on that analysis the Regulation CC Funds Availability on deposits is being raised from $200 to $225 on July 1, 2020.
  4. Reliable Way to Contact Another Financial Institution – Nacha has created a financial institution contact database where financial institutions will be required to register a good contact number for inquiries about payment transactions. This database is currently available via the Risk Management Portal, but every financial institution will be required to register contact information for ACH operations and fraud/risk management no later than October 30, 2020.
  5. Safe Processing of ACH Payments – In light of recent news media about MyPayrollHR and Cachet, effective due diligence must continue not only on our Originators and Third-Party Senders, but also those clients of the Third-Party Senders. Another key to this process is knowing when or if a reversal entry or file can be processed.

P.S. Don't Miss Payment Systems Update!

If all of the new happenings of 2020 are on your mind, we’ve got you covered! Payment Systems Update will be tackling the important topics YOU need to know to have a successful year. Register now for a session near you!