UMACHA & the 2010s
Number of Employees: 7
The 2010s brought massive changes to the payments industry, fueled by technological innovation and shifting consumer habits. Digital payments gained popularity as smartphones became ubiquitous, enabling transactions through mobile apps and digital wallets. E-commerce exploded via Amazon and Alibaba, reshaping global retail. Fintech startups emerged as significant players, challenging traditional financial institutions with innovations like peer-to-peer payments and blockchain technology.
Technological advancements accelerated at an unprecedented pace during the 2010s. The proliferation of smartphones and social media platforms like Facebook and Twitter transformed how people communicated, consumed information, and engaged politically and socially. The rise of streaming services such as Netflix and Spotify revolutionized entertainment consumption, challenging traditional media channels.
On the regulatory front, PSD2 was implemented in Europe with the intention of improving competition and consumer protection in payment services. Unfortunately, concerns about data privacy and cybersecurity quickly emerged, leading to increased scrutiny and regulatory responses. Overall, the 2010s laid the groundwork for further disruptions and innovations in payments, propelled by technological advancements, evolving consumer behaviors, and broader societal changes.
2010
UMACHA begins performing ACH Risk Assessments.
The Audit Department becomes Compliance Services.
Nacha Rule Amendment: Risk Management and Assessment
- Effective June 18, 2010
- The Risk Management and Assessment Rule required all Participating DFIs to conduct a risk assessment of their ACH activities, and to implement risk management programs based on the results of such assessments, in accordance with the requirements of their regulator(s). The Rule also provided that each ODFI has the right to terminate or suspend an Originator, or any Originator of a Third-Party Sender, for breach of the Rules; and the right to audit an Originator’s, or Third-Party Sender’s and its Originators’, compliance with the agreement and the Rules. In addition, the Rule required ODFIs to perform a more comprehensive set of risk management practices in addition to the current rules on exposure limits.
Nacha Rule Amendment: Direct Access Registration
- Effective June 18, 2010
- The Direct Access Registration rule required each ODFI to register its Direct Access status with NACHA. For an ODFI that has Direct Access relationships for debit origination, the rule required the ODFI to provide NACHA with specific information about each Originator or third-party with Direct Access, as well as data about that party’s transaction volume. The rule also required an ODFI’s board, committee of the board, or its designee to approve a Direct Access debit participant before the ODFI can originate ACH debit entries for that Originator or third-party.
2011
Nacha Rule Amendment: Rules Compliance Audits for Third-Party Senders
- Effective March 18, 2011
- The scope of the annual rules compliance audit requirements was expanded to require Third-Party Senders to conduct such audits to the extent that they perform any functions of an ODFI under the Rules.
Nacha Rule Amendment: Audit Deadline
- Effective December 1, 2011
- This change amends the Rules to extend the deadline for completion of the annual Rules compliance audit from December 1st to December 31st.
2012
Nacha Rule Amendment: Corporate Account Takeover – Availability Exception Option
- Effective January 1, 2012
- The Availability Exception Option Rule provides an RDFI that reasonably suspects that a credit Entry is unauthorized with an exemption to the Rules provisions requiring the RDFI to make certain credit Entries available to customers more quickly than required to under Regulation CC; and requires the RDFI promptly to notify the ODFI if the RDFI makes use of this exemption to the funds availability requirements of the Rules.
2013
National Check Professional (NCP) Program launches.
Compliance Services Department performs first Third-Party Sender Audit.
Nacha Rule Amendment: ACH Security Framework
- Effective September 20, 2013
- This amendment to the Rules creates a Security Framework aimed at protecting the security and integrity of certain ACH data throughout its lifecycle. The Security Framework establishes minimum data security obligations for ACH Network participants to protect ACH data within their purview.
2015
Nacha Rule Amendment: Same Day ACH – Moving Payments Faster
- Approved May 18, 2015
- The rule will become effective in three phases:
- Phase 1 would become effective on September 23, 2016;
- Phase 2 would become effective on September 15, 2017;
- Phase 3 would become effective on March 16, 2018.
- The rule will become effective in three phases:
- The rule amendment enables the option for Same-Day ACH payments through new ACH Network functionality, without affecting existing ACH schedules and capabilities. The Same Day ACH implementation will be spread out over three phases beginning in September 2016. This phased approach will provide an eighteen-month period over which businesses and financial institutions can manage their implementation efforts, which will allow the industry to gradually acclimate to a faster processing environment.
2016
The Education Department adds webinars and symposiums to its course schedule.
Compliance Services Department offers remote services.
Same Day ACH begins.
Nacha Rule Amendment: Same Day ACH: Moving Payments Faster (Phase 1)
- Effective September 23, 2016
- In the first phase, ACH credits will be eligible to be processed during the two new same-day windows. Interbank settlement for same-day ACH credits will occur at 1:00 p.m. and 5:00 p.m. ET, respectively, for the two new processing windows. RDFIs will be required to provide funds availability by the end of the RDFI’s processing day. By requiring that all RDFIs accept same-day ACH transactions, the Rule will ensure the universality of same-day capability throughout the ACH Network.
2017
The Clearing House begins selling its RTPN Network services, becoming the first entity to offer Real-time payments in the U.S.
Nacha Rule Amendment: Same Day ACH: Moving Payments Faster (Phase 2)
- Effective September 15, 2017
- In the second phase, ACH debits will become eligible for same day processing during the two new same-day windows. Same-day credit funds availability will remain at the end of the RDFI’s processing day.
Nacha Rule Amendment: Third-Party Sender Registration
- Effective September 29, 2017
- This rule requires every ODFI to either register its Third-Party Sender customer(s) with NACHA, or provide to NACHA a statement that it has no such customers.
2018
Accredited Payments Risk Professional (APRP) Program launches.
Nacha Rule Amendment: Same Day ACH: Moving Payments Faster (Phase 3)
- Effective March 16, 2018
- In the third phase, RDFIs will be required to provide funds availability for same-day credits no later than 5:00 p.m. at the RDFI’s local time.
2019
Fred Laing II retires after 35 years and Angi Farren AAP, APRP is promoted to President & CEO.
Nacha Rule Amendment: ACH Rules Compliance Audit
- Effective on January 1, 2019 to apply to audits required to be conducted by December 31, 2019.
- This rule consolidates all requirements for an annual rules compliance audit within one section of the NACHA Operating Rules (Rules). This rule also eliminates redundant language by removing from Appendix Eight the specific inventory of points within Parts 8.2, 8.3, and 8.4.
Nacha Rule Amendment: Providing Faster Funds Availability
- Effective September 20, 2019
- Establishes additional funds availability standards for ACH credits
- Funds from Same Day ACH credits processed in the existing, first processing window will be made available by 1:30 p.m. in the RDFI's local time.
- Funds from non-Same Day ACH credits will be available by 9:00 a.m. RDFI's local time on the Settlement Date, if the credits were available to the RDFI by 5:00 p.m. local time on the previous day (i.e., apply the existing PPD rule to all ACH credits).
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2010 - 2019 Navigating Payments brochures
2010 - 2019 ACH Rule Books w/ UMACHA logos
L to R: Federal Reserve Bank of Minneapolis Sr. VP Claudia Swendseid & former UMACHA President Fred Laing II - 2010
L to R: current UMACHA President Angi Farren & Fred Laing II taking a question at Navigating Payments 2012
A collection of Fred Laing II's Navigating Payments costumes from the 2010s
2014: Patch commemorating UMACHA's 40 years as a Payments Association
General session at The Heritage Center of Brooklyn Center during Navigating Payments 2014
2015: Fred Laing II seated onstage at Navigating Payments
2015: Fraud Symposium at the Federal Reserve Bank of Minneapolis - Helena, MT Branch
2018: UMACHA's fourth official logo
L to R: UMACHA employees Pat Klein, Danyell Pozorski, Angi Farren, Jennifer Miller, & Myriah Garvey celebrating AAP Day 2018
L to R: Angi Farren, Fred Laing II, Shelly Doll, & Chris Germann at Nacha's Payments 2018
Inaugural APRP class in attendance at Nacha's Payments 2018 in San Diego
Christmas Sweater Day 2018
Back row - L to R: Sara Hentges, Melissa Bailley, Myriah Garvey, Danyell Pozorski, Rhonda Whittaker, Fred Laing II, Pat Klein
Front row - L to R: Pamala Kipka, Jennifer Miller, Angi Farren, Andy Benhardus
L to R: Fred Laing II, Guy Berg, Federal Reserve Bank of Minneapolis, Angi Farren in 2019
2019 Staff Photos
Back row - L to R: Rhonda Whittaker, Pamala Kipka, Danyell Pozorski, Maria Patch
Middle row - L to R: Jason Johnson, Melissa Bailey, Andy Benhardus
Front row - L to R: Sara Hentges, Angi Farren, Fred Laing II, Jennifer Miller
2019: Fred Laing II's retirement party