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ACH Rules Awareness & Updates

Last Updated: 6/4/2024

Each company sending ACH entries through Kennebunk Savings Bank using its online banking system must comply with the NACHA Operating Rules & Guidelines as stated within the ACH Origination Agreement between Kennebunk Savings Bank (“ODFI”) and you the client (“Originator”).  The National Automated Clearing Houses Association (NACHA) is the rule making body governing the ACH network and therefore all participants of the ACH network must comply with these Rules.  The NACHA Operating Rules are updated with changes, additions, and deletions from time to time.  Kennebunk Savings Bank will communicate any changes to our clients so they are educated on the Rules and are able to make any necessary changes to their daily process as a result of these changes.  Below, we outline not only some of the Originator’s responsibilities but may also include any changes made to the Rules which will have an impact on you as the Originator.

Data Security:  As an Originator you must comply with specific security requirements with respect to the handling and storage of Protected Information.  To protect certain financial data at all times minimum security obligations require Originators establish, implement, and, as appropriate, update security policies, procedures, and systems related to the initiation, processing, and storage of entries.  These policies, procedures, and systems must:

  1. Protect the confidentiality of Protected Information;
  2. Protect against anticipated threats to the security of Protected Information;
  3. Protect against unauthorized use of Protected Information.

Authorization Requirements:  You must obtain authorization from the Receiver to originate one or more Entries to their account.

Proper Use of Standard Entry Class (SEC) Code:  Kennebunk Savings Bank allows our Originators to send PPD (Prearranged Payments and Deposits) for corporations hitting consumer accounts and /or CCD (Corporate Credits and Debits) for corporations hitting corporate accounts.   Since the file format allows only one SEC code, consumer and corporate transactions are to be in separate batches with the appropriate SEC code.  Consumer transactions are to reflect a consumer name in the “Individual Name” field and corporate transactions are to reflect the corporate name.

Holidays: Here is a  listing of Bank recognized holidays that are considered non-processing for ACH transactions.  ACH files will need to be effective for the business day prior to or the business day after the holiday.

Risk Management Requirements:

Kennebunk Savings Bank as an ODFI may establish additional risk management procedures such as requiring an audit of its Originators’ activity be performed, closely monitoring the return volume of its Originators, and assessing the risk associated with the type of ACH activity performed by each Originator. Kennebunk Savings Bank may also limit the types of standard entry class codes which can be originated using Kennebunk Savings Bank’s routing number.  It is important that you as an Originator utilizing the ACH network to process debit and credits make note of any Rules changes and make appropriate changes to your internal processes.  If you have any questions regarding the impact of these Rules, please do not hesitate to contact the Kennebunk Savings Bank Cash Management department at or 1.888.572.5249