Nacha Celebrates 50 Years of Payments Innovation
07 Mayo 2024 - 9:20AM
Business Wire
In 1974 payday usually meant being handed a paper check—which
was the same way most bills were paid. But in that year, a
significant step was taken toward changing all of that when the
National Automated Clearing House Association, or NACHA was
formed.
Fast forward 50 years—today Nacha is not only known for
governing the thriving ACH Network, but also for developing rules
and standards, providing industry solutions, and delivering
education, accreditation, and advisory services.
The year’s festivities kicked off in earnest today as Jane
Larimer, Nacha President and CEO, joined two of her predecessors on
stage here at Smarter Faster Payments 2024 to reflect on a
half-century of payments innovation and to look ahead at Nacha’s
future.
In the 1980s, Bill Moroney, Nacha’s first CEO, was responsible
for the formation of Nacha as a standalone organization,
development and promotion of Direct Deposit through TV commercials,
and establishment of the Payments Institute. Moroney also garnered
support for private sector ACH processing and noted how important
that role continues to be to this day.
“Nacha still stands as one of the best examples anywhere, in any
industry, of self-regulation. Every financial institution is
responsible for abiding by the Rules,” said Moroney. “The ACH
Network shows the best of what collaborative behavior can do.”
The first implementations of Same Day ACH and International ACH
Transactions (IAT), and the launch of the Accredited Payments Risk
Professional (APRP), Payments Innovation Alliance and Phixius took
place under Jan Estep’s tenure. She was appointed CEO in 2008.
“The ACH Network has adapted in ways that respond to technology
and regulation, and has continued to evolve to meet changing
end-user needs,” said Estep. “The solid foundation that we’ve built
will continue to support us into the future.”
That sentiment was echoed by Larimer, who succeeded Estep and
facilitated the exponential growth of Same Day ACH through numerous
enhancements. Also under Larimer’s leadership, a risk framework and
related Nacha Operating Rules were established, the Accredited
Faster Payments Professional (AFPP) Program was developed, and
Phixius grew to more than 5 million transactions.
Larimer promised that the first 50 years are only the beginning
for Nacha and the ACH Network. Nacha will continue to grow Same Day
ACH through expanded processing windows and faster funds
availability, build superior risk-management tools and resources,
continue to foster an engaged and diverse payments community,
deliver best-in-class payments education and accreditation
programs, and continue to advance payments system innovation and
interoperability.
“The ACH Network continues to advance innovation and
interoperability, and is the backbone of the U.S. economy,” said
Larimer. “Nacha’s strong past and bright future will drive
continual improvement of the ACH Network to benefit businesses and
Americans.”
Payments also remembered former Nacha CEO Elliott McEntee, who
was at the helm from 1989 until 2008. McEntee died last November.
Among McEntee’s accomplishments were introduction of the Accredited
ACH Professional (AAP), adoption of Cross-Border Rules between U.S.
and Canada, development of Quest Operating Rules for electronic
benefits transfers, and issuance of the first Risk Management
Handbook and ACH Compliance Manual.
The three leaders on stage recalled a quote from McEntee that
remains true to this day: “The Nacha Operating Rules have an impact
on thousands of financial institutions...so it’s important to build
a consensus where you are creating a win-win-win situation for
large commercial banks and the smallest credit unions.”
The event at Smarter Faster Payments 2024 also featured the
debut of a new video highlighting some of the key moments in
Nacha’s first 50 years. You can watch the video on Nacha’s YouTube
channel: https://www.youtube.com/watch?v=o74CqDfBp5I.
About Nacha
Nacha governs the thriving ACH Network, the payment system that
drives safe, smart, and fast Direct Deposits and Direct Payments
with the capability to reach all U.S. bank and credit union
accounts. There were 31.5 billion ACH Network payments made in
2023, valued at $80.1 trillion. Through problem-solving and
consensus-building among diverse payment industry stakeholders,
Nacha advances innovation and interoperability in the payments
system. Nacha develops rules and standards, provides industry
solutions, and delivers education, accreditation, and advisory
services.
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version on businesswire.com: https://www.businesswire.com/news/home/20240507081453/en/
Dan Roth Nacha 571-579-0720 media@nacha.org