ACH Warranties & Indemnities

Join this session to uncover the hidden promises and potential liabilities in the warranties and indemnities you make every day. Learn how to manage breach claims with confidence and walk away with practical strategies to protect your institution in an increasingly complex ACH environment.

 

Every day, financial institutions that participate in the ACH Network, whether as ODFI, RDFI, or both, make important warranties and indemnities to other participants, often without realizing the full scope of their obligations. This session provides an examination of some of these warranties and indemnities, why they matter, and how they affect your institution’s risk and compliance responsibilities. Participants will take a closer look at the specific warranties and indemnities tied to ACH authorizations, Notifications of Change, and transactions that involve converting an eligible source document, such as a check, into an ACH debit. The discussion will also cover effective steps to take when resolving breach of warranty claims with other financial institutions, including strategies to use when an agreement cannot be easily reached.