Introduction
Businesses, in the present day and age, do not want to get entangled in lots of paper works when processing transactions, particularly when processing of myriad of financial transactions with their stakeholders. Firms would like to obtain the benefits of hassle-free processing of financial transactions that lead to significant cost-savings preferably from a fast and secure electronic system of monetary transfer.
Definition
Automated Clearing House (ACH) is a secure electronic system of funds transfer that facilitates all the financial transactions of private businesses, government agencies, and all financial institutions in the United States. It is the primary electronic fund transfer (EFT) network connecting all U.S. financial institutions.
The ACH financial services encompass electronic transmissions of payments including on-line payments, direct deposits, funds transfer, and collection of funds, among others. Because it is an electronic system that paves the way for faster processing or turnaround time of financial transactions in a secure environment, it therefore generates significant cost-savings for all sectors availing of its services.
History
In response to the rapid escalation of check volumes in the U.S., a group of California bankers formed the Special Committee on Paperless Entries (SCOPE). With the intent of creating an automated payments system, the SCOPE explored workable frameworks such as the operational, technical and legal aspects of it. The success of this undertaking eventually led to the formation of the first ACH association in 1972.
In its quest to establish uniform operating rules for the exchange of Automated Clearing House payments among ACH associations, the Electronic Payments As...
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... information required by the Bank Secrecy Act, which includes: name of originator, physical address, deposit account number, depository institution, amount of payment,
Name of receiver, address, account number and financial institution.
Works Cited
Wayner, Peter. Andersen, Arthur. Fried, Frank, Harris, Shriver & Jacobson. THE
MANAGEMENT OF RISKS CREATED BY INTERNET-INITIATED VALUE TRANSFERS
National Automated Clearing House Association. The Internet Council, 1997. Soft cover.
Hughes, Denis M. Federal Reserve. Automated Clearing House, Bank Holding Company, Beige
Book, Booksllc.Net, 2013.
Miller, Frederic P., Vandome, Agnes F., Mcbrewster, John. Automated Clearing House. VDM
Publishing House. Paperback. April 2010
Web Links:
http://www.ehow.com/list_7250847_rules-ach-origination.html#ixzz31fkkV2ak
https://www.nacha.org/ach-network
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