New Rules Shake Up How Quickly Banks Must Act When Your Money’s At Risk

A Note From Natalie:

Hello and welcome to Forbes Advisor’s Weekly Brief, where each week, we dive into the realities of consumer finance and empower you with knowledge to help make your financial journey easier.

Fraud refunds are about to hit your wallet faster, thanks to these new rules.

Starting October 1, banks will have just six banking days (instead of 11, which is generally the norm, although exceptions exist) to investigate and return your money after a claim for a suspicious charge. Even better? The new rules allow you to flag shady transactions before they hit your account, giving you more control.

The National Automated Clearing House (Nacha) rules keep ACH transactions—like direct deposits or bill payments—working smoothly between banks. And with 8.3 billion ACH transactions processed in just the second quarter of 2024, a year-over-year increase of over 6%, we rely on them more than ever.?

These updates speed up fraud prevention and help keep your cash safe in a world where scams are on the rise.

From our partner:?When sending money across borders, understanding currency exchange rates is key—here are five important tips to know before making an international money transfer. Read more here.

This week, we unpack the new rules that help you fight against shady charges on everything from online purchases to bill payments.

Sincerely,

Natalie Campisi

Senior Staff Writer

New Rules Shake Up How Quickly Banks Must Act When Your Money’s At Risk

Understanding your rights regarding everyday ACH transactions isn’t just smart—it’s crucial. Nacha’s new rules target suspicious or unauthorized charges on your account. It puts the power back in your hands, helping you protect your account and claw back your money quicker when something goes wrong.?

Here's how the rules will help you:

• Return for questionable transaction (reason code R17): Banks can now use this code to return payments they suspect are fishy. While it’s optional, this allows banks to flag fraud more clearly, which can help you get your money back faster when something feels off.
• Request for return (reason code R06): If your bank gets a request from another bank to return a payment, they now have more flexibility to do so. This means quicker recovery when a payment is flagged as suspicious.
• Funds availability exceptions: Sometimes, banks delay making funds available if they suspect a payment might be fraudulent. This gives them extra time to investigate, helping protect your account from scams like fake payments or account takeovers.
• Written statement of unauthorized debit: You can now sign and submit a claim for an unauthorized charge as soon as you spot it, even before the payment fully hits your account.?
• Faster refunds: After you file a claim for unauthorized charges, banks will have only six days (instead of 11, which is the general timeframe, though exceptions exist) to return your money. This is a huge win for anyone tired of waiting around for refunds.

These changes will make it much easier for banks to stop fraud in their tracks and help you recover your money faster, all while helping to keep your account safe.

Related Stories:?

• How To Prevent Credit Card Fraud
• Credit Card Fraud Detection Policies Of Major Issuers
• What Is An ACH Payment And How Does It Work?

Here’s what else is going on in the news this week:

• Winners And Losers From The Fed’s Interest Rate Decision?The latest Fed rate cut will shake things up for consumers—some folks will score, while others might take a hit. Here’s what you need to know.
• When Do Hotels Charge Your Credit Card? Ever wonder why hotels ask for your credit card again at check-in (after you have already paid online)? You’re not alone. We’re breaking down when—and why—hotels charge your card, from booking to check-out, plus tips to avoid surprises on your bill.