Nacha News

Nacha creates broadly adopted payment and financial messaging rules and standards through consensus-led governance, international collaboration, and innovative development practices. We continually advance the ubiquitous ACH Network and engage diverse stakeholders to accelerate a digital future of global financial services interoperability.

Featured News

Jane E. Larimer to be Next CEO of Nacha

Announcement Coincides with Refreshed Nacha Brand Uniting its Programs and Initiatives through New Visual Identity

ORLANDO, Fla., May 6, 2019 – The Nacha Board of Directors has selected Jane E. Larimer as the next President and CEO of Nacha effective July 1, 2019. The Board thanks Janet O. Estep, Nacha’s current President and CEO for her successful 11 years of leadership of Nacha and within the payments industry, and welcomes her assistance in the transition before she retires at the end of 2019.

Nacha Introduces the Nacha Corporate Experience

The Nacha Corporate Experience Combines Standards and Technology to Deliver a More Efficient Payments Experience for Today’s Businesses 

ORLANDO, Fla., May 6, 2019 – Today, Nacha introduces the Nacha Corporate Experience, a new way of demonstrating how businesses can more effectively exchange payments and information.

Risk Management Advisory Group Participates in Business Interruption Simulation

Nacha's Risk Management Advisory Group (RMAG) recently participated in a simulation exercise of a service provider business interruption.   The goal was to gather input and develop a set of sound practices for ACH Network participants when faced with this type of business interruption.  The specific scenario was an extended outage by a single Third Party Service Provider serving as an ACH service bureau, sending and receiving ACH files for multiple hundreds of ODFIs and RDFIs. 

In the scenario, the Third Party Service Provider suffered a data center failure shortly after completing processing for the first Same Day ACH processing window on the Thursday before a Friday month end. The failure continued through Thursday and Friday night processing before reaching a resolution mid-day Saturday.

As with other business continuity and disaster recovery scenarios, many of the key issues that RMAG members identified and discussed were about the timing of, and the managing of, the communications among the parties and with the industry.  Much of the discussion focused on “what do we know,” and “when do we know it.”  When communication was late or imprecise there was a greater degree of uncertainty with regard to the next steps. 

Recommendations and Sound Practices

The following are some considerations, recommendations and sound practices for participants in the ACH Network.

For Financial Institutions that use an ACH service bureau:

  • Have a clear understanding of your processor’s capabilities for business recovery and contingency operations, and what that means to your institution. 
  • Consider whether those recovery capabilities are sufficient for your own business recovery plans.  
  • Ensure that your financial institution has an understanding of the contractual obligations that your processor has to you in the event of a service outage.
  • Consider when and how you would execute your corporate client and consumer customer communications plans.
  • Ensure that customer and client-facing staff are trained to deal with both general questions and detailed questions about the specific situation.

For other Financial Institutions:

  • Carefully monitor all communications from your ACH Operator and your Regional Payments Association looking for potential impacts to your institution.
  • Manage the communications to your internal teams. 
  • Consider how and when you would execute your corporate client, and consumer customer communications plans.
  • Ensure that customer and client-facing staff are trained to deal with both general questions and detailed questions about the specific situation.

Both Nacha and the ACH Operators would monitor significant ACH Network business interruptions, and would be in communication with each other and the Regional Payment Associations (RPAs). RPAs are frequently the primary point of contact on industry issues and events for many financial institutions.