NACHA, short for the National Automated Clearing House Association, manages the ACH network, the system responsible for handling billions of electronic payments across the United States. It establishes the standards and operational rules that enable services like direct deposit, bill payments, and online purchases.
About NACHA’s Background and Function
Established in 1974, NACHA operates as a nonprofit trade association under the 501(c)(6) classification. It is supported financially by close to 11,000 financial institutions involved in the ACH network that it represents and regulates.
Even if the name NACHA doesn’t sound familiar, chances are you’ve benefited from its work. For example, if your wages are deposited directly into your bank account through payroll services offered by Beyond, NACHA is likely the organization behind the rules that govern that process.