NACHA

Business & Finance abbreviation · Banking

NACHA
Stands forNacha (formerly National Automated Clearing House Association)
CategoriesBusiness & Finance

NACHA stands for Nacha (formerly National Automated Clearing House Association), a banking abbreviation.

Nonprofit association that writes the operating rules for the US ACH network and oversees its use by banks, credit unions and payment companies. Its rules govern file formats, timing, return codes and risk management for ACH payments.

Example: Under NACHA rules, the employer must keep the signed direct-deposit authorization on file.

Usage notes

Founded in 1974, the organization now styles its name "Nacha" and no longer uses the long form. ACH return codes, such as R01 for insufficient funds, are defined in the Nacha Operating Rules. It also awards the Accredited ACH Professional (AAP) credential to payments staff.

More banking abbreviations

  • KYC – Know your customer
  • LCR – Liquidity coverage ratio
  • LDR – Loan-to-deposit ratio
  • LLP – Loan loss provision
  • LOC – Line of credit
  • MT103 – SWIFT MT103 message (single customer credit transfer)
  • NEFT – National Electronic Funds Transfer
  • NII – Net interest income
  • NIM – Net interest margin
  • NPA – Non-performing asset
  • NPL – Non-performing loan
  • NSF – Non-sufficient funds

See all 80 banking abbreviations →