Payments

The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.

Payments News

Nacha ACH modernization rules effective next month

Aug. 25, 2021

Nacha “Meaningful Modernization” changes to improve and simplify the ACH user experience are scheduled to take effect next month.

Details: Effective Sept. 17, the Nacha improvements will define a “Standing Authorization” and expand the use of oral authorizations for consumer ACH payments.

Impact: The changes will help ACH network participants address the effects of new technologies on payments, such as obtaining oral authorization via voice assistants or using Zoom instead of a telephone.

ICBA Position: In an April 2020 comment letter, ICBA said it generally supports the changes to reduce ACH barriers, increase flexibility and consistency for authorizing consumer ACH payments, and reduce certain administrative burdens.