ACH and NACHA
Central to the new way of handling checks are
the Automated Clearing House ACH), which handles check clearing,
and the National Automated Clearing House Association (NACHA),
which creates the guidelines for check clearing.
The Automated Clearing House (ACH) Network is
a highly reliable and efficient nationwide batch-oriented electronic
funds transfer system governed by the NACHA operating rules, which
provide for the interbank clearing of electronic payments for
participating depository financial institutions. The Federal Reserve
and Electronic Payments Network act as ACH operators, central
clearing facilities through which financial institutions transmit
or receive ACH entries.
ACH payments include:
- Direct deposit of payroll, Social Security
and other government benefits, and tax refunds
- Direct payment of consumer bills such as
mortgages, loans, utility bills and insurance premiums
- Business-to-business payments
- E-commerce payments
- Federal, state and local tax payments
The number of ACH payments originated by financial
institutions increased to 8.05 billion in 2002, up 13.6 percent
from 2001. These payments were valued at $21.7 trillion. Including
payments originated by the Federal government, there were a total
of 8.94 billion ACH payments in 2002 worth more than $24.4 trillion.
The National Automated Clearing House Association
(NACHA) provides rules and guidelines for electronic payment processing.
- NACHA - The Electronic Payments Association
is the leading organization in developing electronic solutions
to improve the payments system.
- NACHA represents more than 12,000 financial
institutions through direct memberships and a network of regional
payments associations, and 650 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 benefits transfer (EBT).
- NACHA's mission is to promote the development
of electronic solutions that improve the payments system for
the benefit of its members and their customers.
Contact us for more information.