NACHA
| Company type | Nonprofit organization |
|---|---|
| Industry | Financial services, Electronic funds transfer |
| Founded | 1974 |
| Headquarters | United States |
Area served | United States |
Key people | Jane Larimer (President & CEO) |
| Products | ACH Network Operating Rules, educational programs, accreditation, advisory services |
| Website | www |
Nacha, initially known as the National Automated Clearinghouse Association, oversees the ACH Network, the primary infrastructure for electronic funds and data transfers across the United States. This network facilitates payments for consumers, businesses, and government entities. Annually, the ACH Network handles billions of transactions such as Direct Deposit and Direct Payment, all regulated by Nacha's Operating Rules.
In 2022, the ACH Network managed by Nacha processed 30 billion transactions, marking a 3.03% increase compared to the previous year, with a total value of US$76.7 trillion—an increase of 5.6% year-over-year. Between 2013 and 2022, transaction volume expanded by 70.95% (equivalent to an annual growth rate of 5.51%), while the total transaction value surged by 98.25%, averaging a yearly rise of 7.08%.
Founded in 1974 as a 501(c)(6) nonprofit organization, Nacha represents more than 9,000 financial institutions through ten regional payments associations along with direct members. Although Nacha does not process ACH transactions itself, it is responsible for establishing rules and standards and provides educational programs, accreditation, and advisory services to support the payments ecosystem.
History and organization
The first operational ACH association in the United States was the California Automated Clearing House Association (now WesPay), created in 1972. Within two years, additional regional ACH associations emerged, culminating in Nacha's formation in 1974 to develop, oversee, and administer the ACH Network. While Nacha governs this network, actual transaction processing is conducted by the Federal Reserve and The Clearing House Payments Company (EPN).
Originally part of the American Bankers Association, Nacha became an independent entity in 1985 and appointed Bill Moroney as its inaugural CEO. He was succeeded by Elliott McEntee in 1988. Janet O. Estep assumed the role of President and CEO in 2008, followed by Jane Larimer taking over leadership in 2019.
Leadership
Nacha’s Board of Directors, consisting of representatives from depository financial institutions, is responsible for overseeing both governance and administration as the administrator of the ACH Network and as an industry association.
The Board members for 2022 include:
- Joe W. Hussey, Managing Director, North America Payables & Receivables Product Executive at J.P. Morgan Chase & Co., serving as Chairperson
- Laura J. Listwan, Senior Vice President and Head of Commercial Payments Products and Service at Fifth Third Bank, Vice Chairperson
- John E. Lucas, Director of Product Management and Development for Treasury & Payments Solutions at Synovus Financial Corporation, Secretary/Treasurer
- Jane Larimer, President & CEO of Nacha
- Jeanine M. Andol-Moeller, Group Vice President at M&T Bank
- Marlene Barkheimer, President & CEO of Farmers State Bank
- Sarah T. Billings, Senior Vice President overseeing Payments Product, Operations & Strategy at PNC Bank
- Lisa S. Coffey, Chief Innovation Officer at Corporate America Credit Union
- Elizabeth A. Cronenweth, Senior Vice President and Payments Group Product Manager at UMB Bank
- Nicholas J. Drinkwine, Head of Transaction Operations at Varo Bank
- Vikram Israni, CFO at Wings Financial Credit Union
- Tina M. Knapp, Vice President & Director of Payments & Service Support at ESL Federal Credit Union
- Stephen C. Max, Executive Vice President and Head of Operations Services at U.S. Bank
- AJ McCray, Managing Director and Head of Global Corporate Payments at Bank of America
- Tim Mills, Senior Vice President for Emerging Payments at Regions Bank
- Philip C. Picillo, Senior Vice President for Treasury & Payment Solutions at Webster Bank
- Christopher E. Richards, Executive Vice President & Chief Banking Services Officer at The Cape Cod Five Cents Savings Bank
- William J. Schoch, President & CEO of WesPay
- Carl Slabicki, Managing Director of Treasury Services at BNY Mellon
- Michelle E. Ziolkowski, Senior Vice President and Head of Global Payables at Wells Fargo
Representatives serving as ACH Operator Advisors include:
- Jason Carone, Senior Vice President responsible for ACH Product Management at The Clearing House
- Keith Melton, Head of Product & Strategy Management for Retail Payments Office at Federal Reserve Bank of Atlanta
ACH payments
The ACH Network supports payment processing with options for “same-day,” “next-day,” or “two-day” settlement. Same Day ACH transactions can be initiated and finalized within hours, facilitating expedited payment processing.
Direct deposit
Nacha’s establishment brought about the initial ACH guidelines and introduced Direct Deposit, the pioneering ACH transaction format. The U.S. Air Force was the earliest employer to adopt Direct Deposit for payroll distribution. Currently, approximately 94% of Americans receive their wages through Direct Deposit.
COVID-19 Economic Impact Payments
In March 2020, the Coronavirus Aid, Relief, and Economic Security Act enabled Economic Impact Payments (EIP) of up to $1,200 per adult and $500 per child. The federal government delivered hundreds of millions of these payments via Direct Deposit.
Quest rules for EBT
Since 1996, Nacha has developed and maintained the Quest Operating Rules governing Electronic Benefits Transfer (EBT). These regulations support the cross-state distribution of government benefits and are incorporated into agreements between government agencies and private service providers. Nacha also establishes standards for associated programs.
Standards for ACA payments
Under the Affordable Care Act’s administrative simplification mandates, Nacha was appointed by the Department of Health & Human Services as the standards development organization (SDO) for healthcare Electronic Funds Transfer (EFT). Nacha’s CCD+Addenda payment format enables electronic claim payments and remittance data exchange between health plans and providers, enhancing cash flow management and reconciliation. In 2018, more than 306.7 million ACH EFT transactions totaling $1.59 trillion were processed from health plans to providers. By the second quarter of 2021, healthcare EFT volumes reached 108 million, marking an approximate 36% growth compared to 2020. Presently, 84% of healthcare providers prefer receiving EFT payments from payers.
Phixius
On August 12, 2020, Nacha announced Visa had joined a growing group of collaborators piloting Phixius, a business platform managed by Nacha that utilizes advanced technologies, structured APIs, and governance rules to enable secure interoperability among connected credentialed service providers (CSPs) for protected exchange of payment-related information. In 2022, Phixius anticipated processing one million transactions, linking over 1,700 financial institutions and 7,000 businesses.
Membership
Nacha’s membership exceeds 500 entities spanning multiple categories:
Nacha Direct Member This category includes Financial Institutions and Payments Associations actively involved in advocacy and education efforts for the ACH Network with regulators and lawmakers. Direct Members also participate in voting on changes to the Nacha Operating Rules.
Payments Innovation Alliance This alliance consists of both domestic and international organizations dedicated to creating initiatives that promote advancement in electronic payments.
Nacha Affiliate Program An informational membership tier providing access to resources related to the ACH Network and Nacha Operating Rules without voting privileges.
Education
Nacha provides a range of educational offerings designed specifically for its members and professionals within the financial services industry:
Smarter Faster Payments Conference
This annual gathering showcases exhibits, educational workshops, and networking opportunities. For those unable to attend in person, the Payments Remote Connect option allows virtual participation.
Payments Institute
A classroom-based program featuring flexible course options across five distinct schools of study and two master’s degree tracks. The TPI Homeschool program serves as an online alternative.
PaymentsIQ by Nacha
A subscription service that delivers virtual payments education on demand.
ACH Legal and Compliance Summit
Launched in 2021, this summit focuses on providing participants with in-depth knowledge of ACH compliance and regulatory frameworks to protect both clients and organizations.
Accreditation
Nacha administers accreditation credentials for financial professionals and institutions, including the Accredited ACH Professional (AAP) and Accredited Payments Risk Professional (APRP) designations.
The Accredited ACH Professional (AAP) certification validates individuals’ extensive understanding of ACH operations, specialized skills in particular ACH domains, and a broad grasp of payment system fundamentals.
The Accredited Payments Risk Professional (APRP) credential recognizes proficiency in managing and mitigating risks throughout the payments landscape, encompassing ACH, checks, wires, debit and credit cards, prepaid cards, as well as emerging payment technologies.
Acquisitions and partnerships
In March 2018, Nacha expanded its capabilities by acquiring the Interactive Financial eXchange Forum (IFX). Later that year, in September 2018, Nacha introduced Afinis Interoperability Standards—a member-driven organization focused on creating interoperable standards for financial services—with IFX Forum integrated into Afinis.
Further broadening its scope, Nacha purchased the Business Payments Directory Association (BPDA) in October 2018, strengthening its B2B payment solutions portfolio and incorporating support for blockchain-enabled B2B transactions.