Payments 101 Terms and Acronyms. October 17, 2007. Agenda. Payment Organizations and Associations Payment Regulations Payment Tenders, Terms and Acronyms Miscellaneous Payment Information. Payment Organizations & Associations. NACHA Federal Reserve. NACHA.
October 17, 2007
NACHA-The Electronic Payments Association
(formerly known as the National Automated Clearing House )
Imposes specific obligations for recurring payments
ACH - Automated Clearing House
This helps in reconciling and balancing your account and an account statement that includes this information serves as proof of payment.
It takes a considerable amount of fuel to ship our country's millions of checks each year between companies, financial institutions, and your home.
The Check Clearing for the 21st Century Act (Check 21) was signed into law
on October 28, 2003 and became effective on October 28, 2004
Checks drawn on consumer accounts payable in U.S. dollars are eligible for ARC conversion.
Checks are machine read to capture the Magnetic Ink Character Recognition (MICR) information
The data elements, along with the check amount, are used to create an ACH record. Typically, the biller's bank account is credited the next business day.
Businesses no longer have to obtain a signature authorization for conversion or have scanners installed at each checkout or bill payment location.
A business needs only to disclose to its customers that their check will be converted into electronic transactions by means of a notice at the register and on a document that customers take with them, such as the back of a receipt. Checks that containauxiliary on-us fields or those over $25,000 are ineligible for BOC.
For the first time, electronic bill paymentsexceeded bill payments made by paper check among the 82.5 million estimatedU.S households using the Internet*
Over time, more of these consumers will migrate to electronic payments
*Source: Harris Interactive and the Marketing Workshop: 2007 Consumer Bill Payment Survey; Electronic Transaction Association