THE WORKS Blog, Credit Union Compliance News & Views

      PolicyWorks, the Teddy Ruxpin of Today

      By Jason Skemp · Mar 20, 2018

      I was thinking about breaking away from nostalgic writings this week, as I wanted to provide a reminder. I decided that you probably wanted to know more about the 80s pop culture. Let’s take a trip down memory lane with one of my favorite Christmas gifts I received, Teddy Ruxpin. Now I might be dating myself a little here considering how far technology has come, but Teddy Ruxpin was a revolutionary toy for its time. Not only did it provide audio via a “way ahead of its time” built-in cassette player, but Teddy’s mouth moved AND his eyes moved in unison with the story that was playing. It was unlike anything I had seen before. This must have been what it was like the first time someone had sliced bread. I mean teddy bears didn’t have moving eyes or moving mouths, let alone providing the ability to play cassette tapes. Simply. Astonishing. I am thinking right now about that talking Teddy Bear who provided endless enjoyment through the stories he told. I kind of wish we had a compliance version of Teddy Ruxpin. Plop in a cassette tape and listen to Teddy help explain the mysteries of the Military Lending Act or help us get excited about the magical world of TRID.

      I guess I get to be your Teddy Ruxpin today. While I don’t have a cool story, I do have a compliance reminder. Let me start this off right and welcome compliance experts to the fantastic world of Phase 3 of the Same Day ACH rules. These go into effect on Friday, March 16. Per the new ACH rules, RDFIs are obligated to post same-day entries and must make funds available from Same Day ACH credits for withdrawal (including cash withdrawal at the teller or ATM as applicable) by 5:00 p.m. at the RDFI’s local time.

      In this story the wise ACH wizard, known as NACHA, states all RDFIs are required to receive same-day ACH payments and virtually all types of ACH payments, including both credits and debits, are eligible for same-day processing. Only international transactions (IATs) and single transactions over $25,000 are excluded.

      The wise wizard NACHA has also provided some helpful resource documents (here and here) for you to utilize during this amazing journey.

      If you run across any ACH gargoyles or trolls (I am speaking of issues or problems, sorry storytelling is not my first calling in life) please review your internal procedures and be prepared to reach out to your helpful heroes in shining armor, your vendors and processors.

      Now this is where the story ends, and everyone lives happily ever after in the land of ACH. Don’t worry, the compliance stories never end. Tune in next time for another exciting compliance adventure.