Waiting Period Following Prenotication Entries - Nacha Operating Rules Subsection 2.6.2

An Originator that has originated a prenotification entry to a Receiver’s account may initiate entries to the Receiver’s account as soon as the third banking day following the settlement date of the prenotification entry, provided the Originator has not received a return or notification of change to the prenotification entry. If a return or notification of change is received in response to a prenotification entry by the opening of business on the second banking day following the settlement date of the prenotification, the Originator must not transmit subsequent entries to the Receiver’s account until it has remedied the reason for the return entry or made the correction requested by the notification of entry.

General Rules for Micro-Entries - Nacha Operating Rules Subsection 2.7.1

An Originator may originate one or more micro-entries to a Receiver’s account prior to initiating future credit or debit entries to a Receiver’s account. A credit micro-entry must be in the amount of less than $1.00. One or more debit micro-entries must not exceed, in total, the amount of the corresponding credit micro-entry.

Micro-entry formatting requirements are addressed in the Nacha Operating Rules Subsection 2.7.2; it states that micro-entries must be submitted as a separate batch of entries and contain “ACCTVERIFY” in the Company Entry Description Field of the Company Batch Header Record. The name of the Originator identified in the Company Name Field must reflect the same Originator that will be identified in future entries to the Receiver’s account. Minor variations to the Originator’s name, for accounting or tracking purposes, are acceptable as long as the name of the Originator remains readily recognizable to the Receiver.

The Nacha Operating Rules Subsections 2.7.3 and 2.7.4 address restrictions on transmission of debit micro-entries and waiting period following the origination of micro-entries.

Subsection 2.7.3 states that an Originator that transmits one or more debit micro-entries to a Receiver’s account must simultaneously transmit for settlement, at the same time, one or more credit micro-entries credit micro-entries that, in aggregate value, are equal to or greater than the amount of the debit micro-entry(ies).

Subsection 2.7.4 states that an Originator that originated one or more micro-entries to a Receiver’s account may initiate future entries to the Receiver’s account as soon as the Originator’s process for verifying the amounts of the micro-entries has been completed.

Electronic Signatures - Nacha Operating Rules Subsection 2.3.2.3

The writing and signature requirements of WSUDs, Stop Payment forms, debit authorizations, and ODFI/Originator Agreements, may be satisfied by compliance with Electronic Signatures in Global and National Commerce Act. An electronic authorization must be visually displayed in a manner that enables the consumer to read the communication and obtained in a manner that evidences the identity of the person who signed the document.

Restrictions on Data Passing - Nacha Operating Rules Subsection 2.3.4

An Originator must not disclose and must ensure that an Originator and any Third-Party Service Provider acting on behalf of the Originator do not disclose the Receiver’s account number or routing number to any third party, directly or indirectly, in initiating a separate debit entry. The Receiver’s account and routing number information should be used only for the intended purpose as described in the debit authorization.

Security Requirements - Nacha Operating Rules Section 1.6

Each non-consumer Originators, Third-Party Service Providers, and Third-Party Senders, whose ACH origination or transmission volume exceeds two million entries annually must, by June 30th of the following year, protect account numbers used in the initiation of ACH entries by rendering them unreadable when stored electronically. The rule applies only to account numbers collected for or used in ACH entries and does not apply to the storage of paper authorizations.

Notices to Variable Recurring Debit Entries to Consumer Accounts - Nacha Operating Rules Subsection 2.3.2.8

If the amount of a recurring debit entry to be initiated to a consumer account differs from the amount authorized, the Originator must send the Receiver written notification of the amount of the entry and the date on or after which the entry will be debited at least 10 calendar days prior to the date on which the entry is scheduled to be initiated.

If the date of a recurring debit entry to be initiated to a consumer account differs from the amount authorized, the Originator must send the Receiver written notification of the new date on or after which the entry is scheduled to be debited at least 7 calendar days before the first such entry is scheduled to be initiated. Saturdays, Sundays, and holidays are not considered to be changes in the scheduled date.