New NACHA Rules for AlarmPayments

Modified on Wed, 6 May at 3:06 PM

Overview

This article explains the NACHA requirement for Bank Account Holder Names on ACH transactions processed through AlarmPayments, effective March 2022. It covers what has changed, how the update affects historical records and recurring charges, how the new verification process works, and what action you need to take to ensure your records are ready.

What's Changed

Starting in March 2022, NACHA (National Automated Clearing House Association) requires all Web ACH transactions to have the ABA routing and account number verified before submission. As a result, the Bank Account Holder Name is now a required field in two locations:

The Recurring Charges screen
The AlarmPayments interface

Impact on Historical Records

Historical Checking/Savings Autopay Charges

Existing recurring charges were created before this requirement existed and do not have an account holder name stored. Because of this:

The Autofill Payment Info button may not have a name available to populate.
You may need to manually enter the site name, or copy and paste it from the site name field.

AlarmPayments Updates

Names entered in AlarmPayments will automatically be added to the corresponding recurring charges going forward.

New and Edited Recurring Charges

When you create a new recurring charge or edit an existing one, the system will automatically add site information and prompt you to select one of the following name sources:

Site name
Bill-to name

Verification Process (March 2022 Forward)

Once verification is enforced, all ACH transactions in AlarmPayments will be subject to the following:

What Happens	Detail
Additional verification step	Each ACH transaction will go through a verification step before processing.
ABA routing & account number check	Both the ABA routing number and bank account number will be verified before the transaction is accepted.
Verification required to submit	Transactions cannot be submitted without passing verification.

⚠️ IMPORTANT

The Bank Account Holder Name entered must match the actual account holder on file with the bank. Transactions will not pass verification if this information is missing or incorrect.

Action Items — What You Need to Do

To prepare for this change, complete the following steps:

Review existing ACH recurring charges. Identify any recurring charges that do not have a bank account holder name stored.
Add bank account holder names where missing. Update those records with the correct account holder name.
Update customer records with accurate information. Ensure account holder names reflect the actual bank account holder.
Verify the Autofill Payment Info button populates a name. When using this feature, confirm that a name is populated before proceeding.
Manually enter or copy/paste names for historical records. For records where no name is available, type the name directly or copy and paste it from the site name field.

Key Points at a Glance

Point	Detail
Effective date	Required for all Web ACH transactions starting March 2022
Name requirement	Bank Account Holder Name must match the actual account holder
Verification	An additional verification step has been added to prevent transaction errors
Historical records	Existing ACH recurring charges may require manual updates to add the account holder name

Need Additional Help?

Our Customer Success team is here to assist you.

Phone: 847-405-9517 x1
Email: customer.success@alarmbills.com