ACH Death Notification Entries (DNEs) & Reclamations: Your Bank’s Liability
Speaker: Donna K Olheiser, AAP
Speaker Designation: VP of Education & Founder, Dynamic Mastership
Speaker: Donna K Olheiser, AAP
Speaker Designation: VP of Education & Founder, Dynamic Mastership
The U.S. Department of the Treasury, the Bureau of the Fiscal Service (Fiscal Service), Defense Finance and Accounting Service (DFAS), and the Federal Reserve Bank of Philadelphia have implemented an email delivery option for ACH reclamations.
While Nacha Operating Rules apply to federal ACH transactions, the Green Book provides exceptions for handling DNEs (Death Notification Entries) and Federal Government Reclamations. This session covers the proper response to DNEs and Reclamations, including a side-by-side comparison of Commercial vs. Government Reclamations to clarify their differences and handling procedures.
Processing ACH Reclamations from the Federal Government can be challenging! Chapter 5 of the Green Book has been updated, making it mandatory for Financial Institutions to respond to all reclamations submitted through the Automated Reclamation Processing System (ARPS) located in Treasury’s Pay.gov web portal (except for responses by DFAS and any Treasury-approved exceptions).
DNE’s (Death Notification Entries) need special handling, details are covered.
This session will identify how to complete the Federal Reserve Bank FedMail® Request Form (PDF) to get signed up for this email service. Misdirected payments are ALWAYS a HOT topic – what to do and your liability as a financial institution will be included in this VERY detailed session. Comparison of Federal Government Reclamations vs Commercial Reclamations is demonstrated using scenarios.
This 90-minute session will discuss details about how processing federal government payments differs from the NACHA Operating Rules. You will learn what the green book is and how this valuable on-line tool will help you with processing DNE's and federal government reclamations. Commercial reclamations have less liability and differ greatly from processing federal government reclamations; the speaker will cover details on each, including the difference between the two types of reclamations.
In the ACH network, Death Notification Entries (DNEs) and Reclamations help prevent improper payments after an account holder’s death. When a federal agency, like the SSA, learns of a recipient’s death, it sends a DNE to notify the receiving bank. If benefits continue to be deposited, the agency may issue a Reclamation, requiring the bank to return the funds. Financial institutions must follow strict liability rules and deadlines to avoid financial loss and regulatory penalties.
Donna founded Dynamic Mastership, LLC in December 2014 in an effort 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've learned during and after each training session.
