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NEWS RELEASE
NACHA to Assess
Financial Institutions Fees on ACH Payments to
Support ACH Network Administration
Herndon,
Virginia, February 5, 2007 - Effective January
1, 2007, NACHA is assessing financial institutions a
fee of $0.0001 on all ACH transactions except
“on-us” transactions. NACHA is also assessing every
financial institution using the ACH Network an
annual fee of $42, including those that choose not
to be members of Regional Payments Associations.
“Over the long
term, the assessment of ACH Network administration
fees will benefit all users of the Network through
more robust network administration programs, such as
risk management, quality improvements and rules
enforcement,” said Elliott C. McEntee, President and
CEO of NACHA. “Administration fees will ensure that
resources are available to support the growth of the
ACH Network.”
Through
transaction fees, all financial institutions will
contribute to risk management, rules enforcement,
quality and other ACH Network administration
programs in direct proportion to their use of the
Network. Through an annual fee, all financial
institutions that use the ACH Network will
contribute a minimum amount to the maintenance of
the NACHA Operating Rules.
For many financial
institutions, the Network administration fees will
be relatively small. For example, a financial
institution with a total annual ACH volume of
580,000 transactions would pay a total of only $100
per year. A financial institution would have to send
and receive 9,580,000 ACH transactions annually to
result in Network administration fees of $1,000 per
year.
Network
administration fees will support NACHA’s ACH Network
administration services, which will be provided
“at-cost” to the industry. These services include:
-
Maintenance and
enforcement of the NACHA Operating Rules;
-
ACH Network risk
management programs and alert services;
-
ACH Network
quality improvements;
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Development of
rules for new ACH applications;
-
ACH Network
communications, research, and statistics; and,
-
Administration
of the National ACH Marketing Campaign.
Transaction fees
will be assessed on all originated and received ACH
credits and debits, including non-dollar
transactions. All commercial inter-bank and Federal
government ACH transactions are subject to the fee,
but not “on-us” transactions that stay within a
single financial institution. The annual fee will be
assessed on a monthly basis at $3.50 per month.
While the fee levels are set for 2007, the amount of
the ACH Network administration fees will be approved
annually by NACHA’s Board of Directors and published
in the Schedule of Fees section of the annual ACH
rulebook.
The ACH Operators
– the Federal Reserve and the Electronic Payments
Network - will bill and collect the fees on behalf
of NACHA via their monthly billing statements to
financial institutions. Financial institutions will
see the fees assessed for the first time on their
January 2007 invoices. The fees will appear as
“NACHA Admin Network Fee/entry” and “NACHA Admin
Network Fee/month”, but are separate and distinct
from ACH Operator charges. The fees are also
separate and distinct from membership dues in NACHA
or a Regional Payments Association.
Additional
information on Network Administration Fees is
available on NACHA’s web site at
http://www.nacha.org/ACH_Rules/ach_rules.htm.
About the ACH
Network and NACHA - The Electronic Payments
Association
The Automated Clearing House (ACH) Network
facilitates commerce, electronically, by serving as
an efficient, reliable and secure payments system.
NACHA, led by member depository financial
institutions and payments associations, fulfills
this purpose by managing the development,
administration, and governance of the ACH Network,
and by providing superior services and value to its
members as the industry association responsible for
ACH payments. NACHA represents more than 11,000
financial institutions through direct memberships
and a network of regional payments associations, and
650 organizations through its industry councils.
Visit NACHA on the Internet at
www.nacha.org.
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