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NACHA - The Electronic Payments Association and the ACH Network

Payments, enhanced digital security and tracking of financial transactions have become significant aspects of many businesses. The executive director of operations of Centervale Apparel has asked you to research this issue and prepare a presentation for the executive committee to educate them on these issues. You remember hearing that the National Automated Clearing House Association (NACHA) is a leader in this field and would be a good place to start your research.

Review the following:
NACHA - The Electronic Payments Association. (2011). News headlines. Retrieved from

Using the Argosy University online library resources as well as NACHA's Web site article to complete the following:
- Describe NACHA and its role.
- Examine and explain the Automated Clearing House (ACH), its role, and how it relates to NACHA.
- List and explain the key participants in an ACH e-payment.
- Describe the key initiatives currently underway at ACH.
- Identify and analyze at least four digital payment concerns Centervale Apparel might want to consider in light of what you have learned from NACHA.
- Use the Notes function in Microsoft PowerPoint to prepare detailed speaker's notes for your formal presentation to the executive committee.

Solution Preview

NACHA means National Automated Clearing House Association. It is a not-for-profit association that takes care of the development of operating rules and commercial practices for the country's network of ACHs (automated clearing houses as well as other forms of electronic payments, which is why it is also called as the Electronic Payments Association. NACHA is responsible for ACH payments and manages the governance of the ACH network. It has helped improve the growth of the use e-checks and e-payments. The ACH network consists of about 11,000 members that are financial institutions and banks that offer services like direct debit and deposit, as well as e-checks for the individual clients and businesses. NACHA governs the ACH network to make sure that it stays effective, reliable and secure so that there is assurance that the electronic payments are organized and efficient thus giving their clients a sense of security.

NACHA provides the necessary tools and resources to assist its members in facilitating the electronic payments. Other services that NACHA offer to their member institutions are financial electronic data interchange (EDI), Internet commerce, and international payments. NACHA also prepares electronic payment reports quarterly and annually. It tracks the growth of the use of these electronic payments such as payroll, tax refunds, SS benefits, and more so that they can monitor the growth of electronic payments. The NACHA website also assists the consumers and small businesses with regards to the procedures of direct deposit, check conversion, and direct ...

Solution Summary

This solution discusses the following:
* NACHA and its role
* ACH network, its role and its relation with NACHA
* Key participants and steps in an ACH e-payment
* Initiatives at ACH
* 896 words
* Seven (7) non-APA references