1. US NACHA User Guide
  2. NACHA Payments

2 NACHA Payments

NACHA payments are US ACH payments managed and governed by NACHA (previously, ‘National Automated Clearing House Association’). They include both Credit Transfers and Direct Debit collections. The ACH Network serves as a network for direct consumer, business, and government payments, and annually facilitates billions of payments such as Direct Deposits and Direct Payments (Collections). It is used by more than 10,000 Direct and Indirect financial institutions and numerous Third party Service providers.

The NACHA Payments module in Oracle Banking Payments has capability for end to end processing of outbound and inbound NACHA payments, right from receipt of file from customer or ACH Operator up until generation of outgoing NACHA file or posting to beneficiary accounts in case of inbound NACHA payments.

The NACHA Payments solution is designed for a depository institution who directly sends/ receives ACH files to/from ACH Operator on behalf of its own customers.

Below are the high-level features of NACHA Payments:
  • NACHA Credit payments & Debit payments
  • Manual initiation & Uploads via channels through REST service for outbound originations
  • Manual input & automatic Incoming NACHA files upload (Folder based)
  • NACHA Directory file upload
  • Company Id definition
  • Debit mandates
  • System support payments and non-payments SEC - Standard Entity Class - codes:
    SEC Code Description
    CCD Corporate Credit or Debit Entries
    CIE Customer-Initiated Entries
    CTX Corporate Trade Exchange Entries
    PPD Prearranged Payment and Deposit Entries
    WEB Internet Initiated Mobile Entries
    SEC Code Description
    ARC Accounts Receivable Entries
    BOC Back Office Conversion Entries
    CCD Corporate Credit or Debit Entries
    CTX Corporate Trade Exchange Entries
    POP Point of Purchase Entries
    PPD Prearranged Payment and Deposit Entries
    RCK Re-Presented Check Entries
    TEL Telephone-Initiated Entries
    TRC Truncated Entry
    TRX Truncated Entries Exchange
    WEB Internet Initiated Mobile Entries
    XCK Destroyed Check Entries
    SEC Code Description
    ACK ACH Payment Acknowledge
    ATX Financial EDI Acknowledgement
    COR Notification of Change or Refused Notification of Change
    PPD Prearranged Payment and Deposit Entries
    WEB Internet Initiated Mobile Entries
  • Zero-dollar Credit & Debit payments
  • Pre-notification Credit & Debit payments
  • Outbound & Inbound Return and Reversal message processing
  • Auto & Manual dispatch; Same day and standard day dispatch
  • Standard Pricing - Defining pricing at Channel / Customer / Account combination
  • Mail based Debit advice / Credit advice
Outbound payment processing features are listed as follows:
  • Non STP for uploaded transactions
  • Preferred Settlement derivation (Same day or Standard)
  • SEC code specific validations
  • Duplicate check
  • Authorization Limit checks
  • Sanctions check
  • Warehouse check
  • Cutoff checks - Processing / Network
  • External account Balance check and Accounting
  • Advice generation
  • Dispatch accounting and Dispatch processing
Inbound payment processing features are listed as follows:
  • Non STP for uploaded transactions
  • SEC code specific validations
  • Beneficiary Name match validations
  • Mandate validations for debits
  • Duplicate check
  • Sanctions check
  • Authorization Limit checks
  • Warehouse check
  • External Account validation check and Accounting
  • Advice generation
Return & Reversal processing features are listed as follows:
  • Outbound return for inbound payments
    • Manual return initiation from exception queues, return entry posting and return payment Dispatch
  • Inbound return for outbound payments
    • Showing all inbound returns in a queue for user actions
    • Matching inbound returns with outbound payments
    • Option for user to accept returns / to reinitiate outbound payments / to dishonor returns
    • Return entry posting for accepted / dishonored returns and return dispatch for dishonored returns
  • Outbound Reversal
    • Manual initiation of reversal for Outbound payments
    • Stopping outbound payments dispatch if not dispatched already
  • Inbound Reversal
    • Showing all inbound reversals in a queue for user actions
    • Matching inbound reversals with inbound payments
    • Option for user to accept / to dishonor inbound reversals
Non-payments processing features are listed as follows:
  • Outbound Acknowledgement (ATK/ATX) message generation for Inbound payments with SEC Codes CCD / CTX
  • Outbound Acknowledgement (ATK/ATX) message generation for Inbound payments with SEC Codes CCD / CTX
  • Outbound Notification of Change (SEC Code COR) message generation for Inbound payments
  • Inbound Notification of Change (SEC Code COR) message processing by linking with Outbound payments