NACHA Overview

Who is NACHA?

According to NACHA, NACHA’s self-regulatory structure, as well as its leadership and engagement of wide-ranging Network participants, has helped make the Network both ubiquitous and highly secure. NACHA administers and facilitates private-sector operating rules for ACH payments, which define the roles and responsibilities of financial institutions and other ACH Network participants.

As a not-for-profit association, NACHA also represents nearly 10,000 financial institutions via 11 Regional Payments Associations and Direct Membership. Through the Payments Innovation Alliance, accreditation programs, conferences and educational offerings, NACHA unites payments systems stakeholders, fostering dialogue and strengthening the ACH Network together.

Originally conceived of and created by collaboration between several ACH Associations in 1974, NACHA has evolved from a set of ACH rules and regulations to the Network governing body it is today. Throughout all of our growth, the safety and security of electronic payments has always been the first priority.

What is a Third-Party Service Provider?

According to NACHA, a Third-Party Service Provider is an Organization that performs any functions related to the processing of Entries on behalf of the Originator (the company originating the transaction), the Third-Party Sender (E-Complish), the Originating Depository Financial Institution, (known as the ODFI – The bank sending the transaction on behalf of E-Complish), or the Receiving Depository Financial Institution (known as the RDFI – The bank receiving the transaction).

Third-Party Service Provider Annual Audit

A Third-Party Service Provider that performs any functions of ACH Processing on behalf of the RDFI or ODFI must conduct an annual audit. The annual audit is meant to comply with the provisions of the NACHA Operating Rules and Guidelines section 8 and must be done no later than December 31st of each year.