NACHA-The Electronic Payments Association

From Wikipedia, the free encyclopedia

NACHA-The Electronic Payments Association, formerly the National Automated Clearing House Association, is an organization that develops electronic solutions to improve the ACH payment system in the United States. NACHA represents more than 11,000 financial institutions through direct memberships and a network of regional payments associations, and 585 organizations through its industry councils. NACHA develops operating rules and business practices for the Automated Clearing House (ACH) Network and for electronic payments in the areas of Internet commerce, electronic bill and invoice presentment and payment (EBPP, EIPP), e-checks, financial electronic data interchange (EDI), international payments, and electronic benefit transfer (EBT).

To ensure that the ACH Network is efficient, reliable, and secure, NACHA shall execute its responsibilities consistent with sustaining the following Network characteristics:

Governed by depository financial institutions;
Provides value to depository financial institutions;
Universally accessible by depository financial institutions;
Based on rules, regulations, and standards that apply to all depository financial institutions and participants, and that are aggressively enforced;
Functions in a batch-processing environment;
Transacts value-dated recurring and spontaneous payments that satisfy business case requirements;
Employs robust approaches to measure and mitigate risk;
Accommodates the exchange of payment-related information;
Recognizes the global nature of commerce and electronic payments.

NACHA's key primary functions are: