NACHA Marks 30th Anniversary

Monday 22 March 2004 10:05 CET | News

NACHA- The Electronic Payments Association turns 30 this year. NACHA was formed in 1974 by the California ACH Association (now WesPay), the Georgia ACH Association, the New England ACH Association and the Upper Midwest ACH Association to establish national, uniform operating rules for the exchange of Automated Clearing House (ACH) payments among local ACH associations.

By 1978 it was possible for two financial institutions located anywhere in the United States to exchange ACH payments under a common set of rules and procedures. It was not until 1988, 14 years after NACHA was formed, that ACH payments exceeded 1 billion annually. By 2001 the volume of ACH payments grew by more than 1 billion in a single year. Today, NACHAs mission is to promote the development of electronic solutions that improve the payments system for the benefit of its members and their customers. 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. In addition to the NACHA Operating Rules for the ACH Network, NACHA develops rules and business practices for Internet commerce, electronic bill and invoice presentment and payment (EBPP, EIPP), e checks, financial electronic data interchange (EDI), international electronic payments, and electronic benefits transfer (EBT). The NACHA Operating Rules standardize payment formats for the ACH Network, and define the rights, obligations and warranties of parties involved in ACH payments. Operating rules provide a uniform business and legal framework for the exchange of payments, which enhances participants confidence in the safety and reliability of the payments system. NACHA Timeline 1974 - The California ACH Association, the Georgia ACH Association, the New England ACH Association and the Upper Midwest ACH Association form NACHA within the American Bankers Association; nationwide ACH rules are approved 1976 - The first NACHA annual conference is held in Atlanta 1985 - NACHA becomes an independent organization; the first CEO is hired 1986 - The Affiliate Membership Program begins 1988 - ACH payments exceed 1 billion 1989 - The first Direct Deposit national marketing campaign is conducted; NACHAs first industry council - the Bankers EDI Council - is formed 1993 - The Accredited ACH Professional (AAP) program begins 1996 - The Quest Operating Rules for Electronic Benefits Transfer are approved 1998 - ACH payments exceed 5 billion; the first e-check application - Represented Check Entry (RCK) - becomes effective 2001 - NACHAs reorganization becomes effective - direct membership is re-opened for financial institutions 2003 - ACH payments exceed 10 billion; e-check payments exceed 1 billion 2004 - NACHA marks its 30th anniversary NACHA Chairmen Leonard J. Heckwolf, Bank One, 2003-present Janet C. Boyst, Wachovia, 2000-2002 Kevin OBrien, Chase Bank of Texas, 1999-2000 Harold J. Piotrowski, Charter One Bank, 1997-1998 Andrew Higgins, Barnett Banks, 1995-1997 Thomas Stecher, Hawkeye Bank of Dubuque, 1995 Sam Cerverizzo, Chemical Bank, 1993-1994 Michael W. Paulette, NationsBank, 1991-1993 David Kvederis, Wells Fargo Bank, 1989-1991 O.C. Russell, Jr., Hibernia National Bank, 1987-1989 Richard W. Brandt, Rainier National Bank, 1986-1987 Joseph P. Coriaci, Continental Illinois National Bank & Trust, 1985-1986 NACHA Chief Executives Elliott C. McEntee, 1988-Present William R. Moroney, 1985-1988

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce