ACH Network: Supporting Payments Innovations

NACHA Announces Launch of New Opt-In Programs and Payments Initiatives that Provide Solutions to Meet Current and Emerging Industry Needs

SAN DIEGO, CA (April 22, 2013) – At PAYMENTS 2013 today, NACHA — The Electronic Payments Association announced the forthcoming launch of two new opt-in programs: Extensible Markup Language (XML) Remittance and Deposited Check Truncation (DCT). Both programs, which are open to all FIs, provide innovative solutions to industry needs.

The XML Remittance program, which launches in May, enables the use of the XML data format for transmitting business-to-business (B2B) transactions through the ACH Network. Through NACHA opt-in rules, agreements and guidelines, and an XML data dictionary, which will standardize formats, the program will help financial institutions, service providers and corporations facilitate the electronification of the B2B remittance process, allowing for improved efficiencies and cost savings.

In addition, the DCT program, which began as a pilot in 2010, will fully transition into an opt-in program later in the second quarter of 2013. DCT enables financial institutions to use the ACH Network to electronically collect low-value consumer checks deposited by customers. This provides for prompt transaction settlement and posting and costs savings for financial institutions. One Originating Depository Financial Institution (ODFI) participating in the pilot experienced a 90 percent savings using DCT.

“The XML Remittance and DCT programs are just two ways in which the Network can be leveraged in innovative ways to meet the needs of the industry,” said Janet O. Estep, president and CEO of NACHA. “Like the FedACH SameDay Service, which seeks to improve the speed of payments and reduce risk in the payment system, opt-in programs can provide significant opportunities for Network participants, and we encourage the industry to take advantage of such services.”

In addition to the XML Remittance and DCT opt-in programs, NACHA is embarking on a number of other innovative payments initiatives that leverage the common infrastructure of the ACH Network.

  • QR Codes for Consumer Bill Payment
    • On May 1, NACHA and its Council for Electronic Billing and Payment will launch an industry evaluation of the QR Encoding for Consumer Bill Payment Guidelines, which were released to the public in December 2012. The evaluation, which serves as the second phase in the overall evaluation of the Guidelines, seeks to verify their specifications and usage in various billing and payment models; determine the effectiveness in reducing bill payment exceptions; finalize implementation requirements and considerations; and address market challenges and opportunities.
  • Account Validation[i] via the ACH Network
    • NACHA recently conducted an account validation survey to start exploring how the ACH Network can help address pain points in this area. Feedback from the industry was overwhelmingly positive, and NACHA is investigating opportunities leveraging the Network for standardization of account validation for ACH transactions and evaluating the potential for a ubiquitous capability.

“These initiatives show how the ACH Network serves as a foundation for innovation,” said Estep. “The Network’s open infrastructure and flexibility provide the opportunity for the development and implementation of creative payments solutions, products and services.  We encourage Network participants to continue to utilize the Network in innovative ways to meet the ever-changing needs of end users.”

For more information on XML, join the special PAYMENTS session, “Data & Dollars Delivery: NACHA Roadmap for XML in the ACH,” Room 3, Tuesday, April 23, 8:00 a.m. Pacific. For additional information on ACH Network opt-in programs, contact NACHA at 703-561-1100 or

NACHA — The Electronic Payments Association
NACHA manages the development, administration, and governance of the ACH Network, the backbone for the electronic movement of money and data. The ACH Network provides a safe, secure, and reliable network for direct account-to-account consumer, business, and government payments. Annually, it facilitates billions of Direct Deposit via ACH and Direct Payment via ACH transactions. Used by all types of financial institutions, the ACH Network is governed by the fair and equitable NACHA Operating Rules, which guide risk management and create payment certainty for all participants. As a not-for-profit association, NACHA represents more than 10,000 financial institutions via 17 regional payments associations and direct membership. Through its industry councils and forums, NACHA brings together payments system stakeholders to foster dialogue and innovation to strengthen the ACH Network. To learn more, please visit,,, and

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