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NACHA Protects and Improves the Payment Processing System

The National Automated Clearing House Association (NACHA) covers Internet commerce, electronic billing, e-checks, and other domestic and international offerings. This association develops electronic solutions that benefit the members and customers residing in the payments systems. "NACHA is the governing body that regulates ACH processing," said CheckCommerce.com chief technical officer Brian Bonfiglio. "They affect our business in many ways."

According to the Web site, NACHA uses the following primary functions to improve the payment processing system:

  • Rule-making for the ACH network and other payment systems
  • Facilitating the development of new payment applications
  • Identification and implementation of risk management initiatives
  • Providing and supporting education programs
  • Instituting and monitoring quality controls in the payment system
  • Improving member communications/relations
  • Responding to regulatory and government relations issues
  • Marketing electronic payment services

More than 12,000 financial institutions and 650 organizations are represented by NACHA, making it a crucial tool in developing and monitoring best business practices for the automated clearing house. "They provide us with guidelines as to how to conduct our ACH processing," Bonfiglio said. "These guidelines sometimes limit what we can do and sometimes present challenges for our business. However, these guidelines also provide us with some recourse when other financial institutions do not follow proper procedures."

CheckCommerce.com is a leader in the payment processing industry that offers a staff of industry experts possessing many years of collective experience. Take advantage of our wide array of services and expertise in managing accounts of any size and kind. Browse our Web site for detailed information about our offerings, or contact us at 1-480-785-2262 if you have additional questions.

For further information regarding National Automated Clearing House Association membership programs, refer to their Web site at www.nacha.org.

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