BROWSE

National Automated Clearinghouse Association (NACHA)

What is 'National Automated Clearinghouse Association - NACHA '

A non-profit membership association charged with overseeing the Automated Clearing House (ACH) system, which operates the largest electronic payment network in the world.

Most of NACHA's 10,000+ members are depositary institutions and regional payment associations. Through its supervisory and rule-making functions, NACHA provides the legal foundation for electronic payment systems to operate effectively, while working to update technologies and create new payment systems.

Explaining 'National Automated Clearinghouse Association - NACHA '

Although not a government agency, NACHA works closely with all interested government agencies (including the Federal Reserve, the state banking authorities and the Treasury) to ensure the integrity of the electronic payments systems used by banking and other depositary institutions.

NACHA not only develops rules and codes of business practices, but it is involved in the development of new applications. It also institutes and monitors quality- and risk-management controls. Over 18 billion ACH payments were processed in 2007.


Further Reading




Q&A About National Automated Clearinghouse Association (NACHA)


What is NACHA?

A non-profit membership association charged with overseeing the Automated Clearing House (ACH) system, which operates the largest electronic payment network in the world.

Who are some of NACHA's members?

Most of NACHA's 1,+ members are depositary institutions and regional payment associations.

How does NACHA ensure integrity of electronic payments systems used by banks?

It develops rules and codes of business practices as well as monitors quality-and risk-management controls. Over 18 billion ACH payments were processed in 27 .

Why was an automated clearing house created?

To reduce costs associated with manual check processing.

Is NACHA a government agency?

No, it is not a government agency but works closely with all interested government agencies including the Federal Reserve, state banking authorities and Treasury.

What does "ACH" stand for?

Automated Clearing House (ACH).

When did this clearing house begin operating in 1973 ?

In 1973 .

What does NACHA do for its members?

Through its supervisory and rule-making functions, NACHA provides the legal foundation for electronic payment systems to operate effectively while working to update technologies and create new payment systems.

How many transactions are processed each year through this clearing house ?

Over 18 billion transactions per year .