The Ins and Outs of the NACHA Rule Making Process

NACHA- the Electronics Payments Association, is one of the largest, and most secure payment systems in the world.  It is the governance of the ACH Network for the United States and moves over 20 billion payments annually. In order for a network of this scale to function properly, it requires a standard set of rules and regulations.  The NACHA Operating Rules provide the legal base for the exchange of ACH payments and define the roles and responsibilities of financial institutions and other participants in the ACH Network.  The process of proposing rules and amendments involves a standard procedure with the final decision made by the NACHA voting membership, the decision makers for the NACHA Operating Rules.

The first step to proposing a new or editing an existing rule is to complete the Business Idea Submission Form.  The submission should include the business idea, define its objectives, and identify a project sponsor, potential participants, and a primary NACHA staff contact.  This streamlined process was created to encourage new business ideas and ensure that each proposal is given equal thought and consideration.  For more information about this process or to view the status of your submitted ideas, visit the NACHA Website.

When an idea is submitted, it then follows the standard NACHA Rulemaking Process.  The idea first goes through the steps shown below and if it passes through each committee it reaches the Request for Comment (RFC) stage.  This stage allows the proposal to be posted on the NACHA website and members are able to give their opinions on whether or not they think it should be made an official rule. 

Members’ comments are then compiled by NACHA staff and provide the Standard Rules Group (SRG) with an analysis. The SRG is a committee of appointed NACHA members that decide whether or not proposal is worth pursuing.  Once a few legal and administrative steps are taken, a ballot is created and sent to voters who make the final decision on whether or not the rule is passed. 

NACHA allows every member’s voice to be heard and ensure that all rules are focused on making the ACH system as efficient and safe as possible.  There are many ways to get involved in the rule making process, check on the NACHA website to learn more for details and open committee positions.

Material in this article was found on the NACHA website.  Please refer to the NACHA website directly for more information.