Risk Management at NACHA

Mitigating Risk

Protection for Network Participants

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Ensuring the safety and security of all ACH Network payments users is NACHA’s foremost concern.

To ensure that the ACH Network maintains the highest level of safety and security for its participants, NACHA works with the industry to employ a comprehensive Risk Management Strategy. This strategy allows for new opportunities and applications to thrive, while ensuring the safety, security and integrity of ACH payments. Our work as an industry guarantees that the ACH Network remains one of the safest available means of moving payments and information.

We’re dedicated to managing risk from every angle by working with the industry to address potential issues before they affect the ACH Network. Our comprehensive Risk Management Strategy, NACHA Operating Rules, policies and registrations and services, along with the input of our Risk Management Advisory Group, help maintain the safety and security of ACH payments.

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Risk Management Strategy

To ensure Network innovation and growth while minimizing risk, NACHA employs a carefully thought-out and balanced Risk Management Strategy. Since implementing this strategy, we’ve seen a significant decrease in unauthorized debits along with a dramatic increase in transaction volume across the ACH Network.
Network participants and NACHA members informed the plan by contributing their expertise. In formulating the different aspects of our strategy, we interviewed ACH stakeholders, who stressed the value of due diligence, continuing education, communication from NACHA and Rules enforcement. Interviewees also emphasized the importance of evolving ACH Network trends and their risk implications.
By combining member and stakeholder input with our own research into card networks, risk mitigation tools and industry trends, we’ve been able to establish a dependable, effective Risk Management Strategy.

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Risk Management Registrations, Services and Tools

Through collaboration with the industry, NACHA provides financial institutions and other ACH Network participants with several key vehicles for effective risk mitigation. These strategies come into play both during the development and implementation of risk management registrations and services, and they are commensurate with the inherent risk in ACH origination activities:

  • Requiring ODFIs to register their Third-Party Sender Relationships
  • Requiring ODFIs to register their Direct Access Status
  • Maintaining the Terminated Originator Database
  • Maintaining a list of emergency ACH contacts at financial institutions
  • Providing a means of reporting ACH data breaches

ACH Network participants who practice sound risk management contribute to NACHA’s collective ability to ensure a safe and secure payments Network for the industry. To better support the industry with risk management activities, beginning on Sept. 29, Network participants will be able to access most of NACHA's registrations and services through one resource: NACHA's Risk Management Portal.

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Risk Management Advisory Group

The Risk Management Advisory Group (RMAG) works with industry stakeholders and key NACHA staff to continually assess risks faced by Network participants. The group makes recommendations to NACHA about risk education, tools and resources, risk mitigation policies and potential rule changes.
In particular, RMAG has provided input on the development of key Rules, such as Network Enforcement and Risk Management and Assessment, published white papers on risk management, and contributed its expertise to developing NACHA’s Terminated Originator Database. The group continues to play a leading role in counteracting potential risks to the ACH Network.
RMAG is proactive and relies on member collaboration in order to help NACHA and the industry maintain a safe, efficient and high-quality ACH Network.