What Is Nacha?
Nacha is the nonprofit organization that governs the ACH Network, the system that processes electronic bank-to-bank payments across the US. It writes and enforces the operating rules that every ACH participant must follow, from the largest banks to the smallest credit unions.
In 2025, the ACH Network processed 35.2 billion payments worth $93 (USD) trillion. That includes direct deposits, bill payments, business-to-business transfers, tax refunds, and person-to-person payments. Every one of those transactions followed Nacha's rules.
Nacha is not a payment processor itself. It doesn't move money. Instead, it sets the standards, manages compliance, and drives innovation across the network. The actual payment processing is handled by two ACH operators: the Federal Reserve (FedACH) and The Clearing House (EPN).
What does Nacha actually do?
Nacha's role goes beyond writing rules. It manages the full lifecycle of the ACH Network's governance, standards, and growth. Its main functions include:
- Operating rules. Nacha creates and updates the Nacha Operating Rules, the legal framework that defines the rights and responsibilities of every ACH participant. These cover everything from transaction formatting and settlement timing to KYC/AML obligations and fraud prevention
- Risk management. Nacha monitors the network for fraud and unauthorized activity, and regularly introduces new rules to address emerging threats. In 2026, major new rules will require all organizations that send ACH payments to implement documented fraud prevention processes
- Industry standards. Nacha maintains the Standard Entry Class (SEC) codes that categorize ACH transactions by type, such as PPD for payroll, CCD for business payments, and WEB for internet-initiated entries
- Education and accreditation. Nacha runs the Accredited ACH Professional (AAP) and Accredited Payments Risk Professional (APRP) programs, trains payments professionals, and hosts the annual Smarter Faster Payments conference
How do Nacha's operating rules work?
The Nacha Operating Rules are the legal foundation of every ACH payment. They define who can participate, what format payments must follow, how fast funds must be made available, and what happens when something goes wrong.
There are four main participant roles under the rules. The Originating Depository Financial Institution (ODFI) is the bank that submits the payment. The Receiving Depository Financial Institution (RDFI) is the bank that receives it. The originator is the company or person initiating the payment. And a third-party sender or service provider may process payments on the originator's behalf.
Nacha updates its rules regularly, with changes typically taking effect in phases. Recent updates have focused heavily on fraud prevention. Starting in 2026, all non-consumer originators must establish "risk-based processes and procedures" to identify payments initiated through fraud, including business email compromise and vendor impersonation. Nacha has called these the most significant rule changes in 20 years.
Noncompliance with Nacha rules can result in fines, loss of network access, and increased liability for fraud losses.
What is Same Day ACH?
Same Day ACH is one of Nacha's most significant innovations. Launched in 2016, it allows ACH payments to settle on the same business day rather than waiting until the next day. In 2022, Nacha raised the per-payment limit from $100,000 to $1 million (USD), which opened up Same Day ACH for larger business payments.
The adoption curve has been steep. Same Day ACH volume grew 45.3% from 2023 to 2024, topping 1.2 billion payments worth $3.2 trillion. In 2025, volume reached 1.4 billion payments valued at $3.9 trillion. Businesses use it for urgent vendor payments, payroll corrections, and time-sensitive account funding.
Same Day ACH isn't instant, though. Payments must be submitted during specific processing windows and settle within hours, not seconds. For true real-time settlement, the US has separate systems like RTP and FedNow.
What are Nacha's limitations for fintechs?
Nacha governs a domestic US system. For fintechs building cross-border products, the ACH Network has several constraints:
- US only. ACH is a domestic network. While FedGlobal ACH exists for limited cross-border use, it covers fewer corridors and is slower than local rails in destination countries like Pix in Brazil or SPEI in Mexico
- Not real time. Standard ACH settles in one to two business days. Same Day ACH settles within hours. Neither is instant
- Business hours only. ACH payments only process on US banking days. No weekends, no holidays
- Indirect access. Fintechs can't connect directly to the ACH Network. They must work through an ODFI (a bank) or use a payment service provider as an intermediary, which adds cost and complexity
For cross-border payments, these limitations compound. A fintech paying contractors in Latin America or Africa through ACH-to-SWIFT chains faces multi-day settlement, stacked fees, and poor FX rates.
Reach the markets ACH can't
Nacha's rules keep the domestic ACH Network secure and reliable. But fintechs operating globally need infrastructure that goes beyond US banking rails. Stablecoin settlement paired with direct local payment rails can deliver instant, low-cost payouts in markets where ACH has no reach.
Due's payment API connects fintechs to local rails in 80+ countries through a single integration, settling in minutes where ACH-to-SWIFT chains take days.
