ACH and NACHA. Check imaging. Remote capture.

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.

ACH

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-checks;
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.

NACHA

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.