managing the development, administration and rules for the financial network that moves more than 20 percent of all electronic payments each year. Through its collaborative, self-regulatory model, NACHA, and the more than 10,000 financial institutions it represents, have facilitated the expansion and diversification of electronic payments on the ACH Network, supporting Direct Deposit and Direct Payment via ACH transactions, including ACH credit and debit transactions; recurring and one-time payments; government, consumer and business-to-business transactions; international payments; and payments plus payment-related information.Through NACHA’s expertise and guidance, the ACH Network is now one of the largest, safest and most reliable payment systems, creating value and enabling innovation for all participants.
forms the Special Committee on Paperless Entries (SCOPE) to explore alternatives to the rapid rise of paper check volume in the U.S.
Chemical Bank installs the U.S.’s first cash-dispensing automated teller machine (ATM) at a Long Island branch.
Although office automation is still dominated by mainframe computers and punch card systems, IBM forms a General Systems Division “to develop and manufacture low-cost data processing equipment” for businesses.
ARPANET, the forerunner of the Internet, introduces electronic mail.
Users have to be connected to ARPANET to exchange messages.
In keeping with the Golden State’s reputation for innovation, California becomes the home of the first Regional Payments Association (RPA): the California Automated Clearing House Association (CACHA). Similar associations soon arise in Georgia (GACHA), the Upper Midwest (UMACHA) and New England (NEACH).
The RPAs establish local rules and formats for electronic payments transfers, paving the way for the first electronic payment.
Pete Yeatrakas didn’t quite father the ACH Network, but he definitely helped birth and raise it
The four U.S. Regional Payments Associations already in existence—
CACHA, GACHA, UMACHA, and NEACH—join in June to form NACHA, the National Automated Clearing House Association.
NACHA’s primary function is to write and maintain the rules for the ACH network, with input from the Federal Reserve and government regulators, member financial institutions and Regional Payments Associations and other Network users. Founding board members are Virgil Dissmeyer, Russell Fenwick, James Jarrell, and J. Daniel Walsh.
NACHA operates as part of the American Bankers Association (ABA) in Washington, DC.
NACHA and the Federal Reserve Bank license SCOPE software for use as a national electronic payments platform.
Aided by NACHA and the Federal Reserve Bank, the U.S. Air Force initiates a Direct Deposit payroll program. This is the first such effort by a U.S.-based employer. It marks the start of the slow but steady phasing-out of paying employees by paper check.
The founding board members of NACHA were Virgil Dissmeyer, Russell Fenwick, James H. Jarrell, and J. Daniel Walsh
To make ACH input file structure uniform, NACHA establishes a 94-character format. It is based on the maximum length of a fixed-field record that will fit on a punch card. The format becomes a standard.
PPD (Prearranged Payment and Deposit), which facilitates Direct Deposit, is launched. U.S. Social Security begins Direct Deposit tests, marking the growing importance of the ACH Network.
The National Committee on Electronic Funds Transfers, established by Congress, determines thatU.S. electronic payments should be provided primarily by the private sector, thus solidifying NACHA’s status.
The Federal Reserve Bank continues to handle public sector involvement, where appropriate.
Seeking a popular name for electronic payments, NACHA licenses “SurePay” from the Oregon ACH Association. The name is used for many years, but does not achieve broad industry use.
The first interdistrict ACH payments occur, marking the emergence of a truly national network.
The U.S. government enacts the Electronic Fund Transfer (EFT) Act to “provide a basic framework establishing the rights, liabilities and responsibilities of participants in electronic fund and remittance transfer systems.”
Cash Concentration and Disbursement (CCD) is launched, a leap forward for corporate cash management. By concentrating cash from multiple accounts and banks, CCDs help businesses with multiple locations consolidate balances cost-effectively. NACHA members use paper slide rules to calculate the timing of CCDs. The CCD will subsequently be renamed the Corporate Credit or Debit Entry to reflect its use for broader use cases by businesses.
The Federal Reserve implements Regulation E of the 1978 Electronic Funds Transfer (EFT) Act, with specific language covering pay-by-phone, ATMs, point-of-sale retail terminals, and preauthorized consumer account transfers including Direct Deposit and Social Security payments.
Right person, right place, right time: that’s a capsule of Rich Oliver’s long and distinguished ACH career. You might call him the dean of the industry