Financial Professionals Urge NACHA to Delay Corporate Check Conversion
NACHA – the US electronic payments association – has been asked by the AFP to delay its rule change permitting corporate check conversion to automated clearing house (ACH) debits. The AFP said that most of its members oppose having their checks converted to ACH debits. As a result, they need time to learn how to opt out of conversion and place ACH debit blocks or filters on their disbursement accounts. In a January survey, 79 percent of corporate treasury and finance professionals stated that their companies would not permit its checks to be converted to ACH debits. The AFP asserted that conversion of corporate checks to ACH debits would disrupt corporate cash management practices and controls, and increase exposure to fraud. ‘Payers – not payees – should decide how payments should be made and authorize conversion to ACH debits if they choose,’ it stated.