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Terms and Definitions

What is the National Automated Clearing House Association?

Updated: May 20, 2024

National Automated Clearing House Association (NACHA) definition and meaning

NACHA is short for National Automated Clearing House and oversees the ACH network which facilitates billions of electronic financial transactions throughout the US. NACHA sets regulations that make transactions such as direct deposit and online consumer purchases possible.

 

More about the National Automated Clearing House Association

Incorporated in 1974, NACHA is a 501(c)(6) not-for-profit association and receives funding through nearly 11,000 ACH financial institutions it governs and represents.

 

Even if you have not heard of NACHA, you are probably familiar with the payments they oversee. For example, if your employer processes payroll with direct deposit, NACHA is the association that most likely sets the rules behind the transaction.

Using National Automated Clearing House Association in a sentence

“By working closely with ACH institutions in the US, the National Automated Clearing House Association has made it easier to send money across a long distance quickly.”

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