Nacha, the electronic payments association, has stepped up scrutiny of the automated clearing house network in an attempt to weed out fraudulent charges.
The industry group
The group also agreed to impose a penalty on banks involved in originating the bad charges. The penalty, known as an "unauthorized entry fee," is designed as an incentive for financial institutions to more closely monitor third-party payment networks.
"These rules show that financial institutions can come together through private-sector rulemaking to address practices that may result in harm to consumers," said
Nacha proposed the rules changes last
