Text Only: NACHA’s Simple Strategy for ACH Endorsement

What does NACHA mean by new ACH messages and terminology — and why were they created?

NACHA developed key words and descriptors to communicate the attributes of ACH payments, and the value of the NACHA Operating Rules and the ACH Network using language that consumers and businesses will better understand.

The intent is that financial institutions, solution providers, companies and government agencies adopt and consistently use these terms and descriptions when communicating with customers, avoiding sometimes confusing or overly technical industry jargon.

Over time, as this language resonates with customers and they have a better understanding of ACH payments and the inherent benefits and protections that surround them, they will more readily use the ACH-based transaction options that are offered to them.

How were these messages and terms developed?

Through data and information gathered from extensive research and focus groups encompassing businesses as well as industry practitioners, feedback identified the most important aspects of the ACH Network and reiterated that Direct Deposit and Direct Payment are the most appropriate terms for all audiences.

The use of the terms Direct Deposit and Direct Payment is also supported by consumer surveys that have been conducted in the past. Our recent studies reconfirmed that these are the appropriate terms.

We focused on the most important points to convey, and created concise, memorable, conversational language to blend what you want to say about how you support payments with what your customers and constituents want to hear.

NACHA is asking financial institutions, solution providers, businesses, and government agencies to begin using the terms “Direct Deposit via ACH” and “Direct Payment via ACH” – what do these terms mean?

Direct Deposit via ACH

  • deposit of funds to a consumer’s account for payroll, employee expense reimbursement, government benefits, tax and other refunds, and annuities and interest payments. Includes any ACH credit payment from a business or government to a consumer.
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  • remains unchanged and reflects the traditional industry uses of the terminology appropriate for all audiences, as supported by extensive research and focus groups.
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Direct Payment via ACH

  • the use of funds for making a payment. Individuals or organizations can send or receive a Direct Payment as an ACH credit or debit.
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  • expanded to include all ACH payments that are not Direct Deposits – not just recurring payments. The expanded definition simplifies terminology for the end user.
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How would organizations use these terms?

  • Although awareness of Direct Deposit is very high, the term Direct Payment is not as fully understood.
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  • By including the phrase “via ACH” with these terms – Direct Deposit via ACH and Direct Payment via ACH – we are able to connect what is known with a broader set of ACH payment options.
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  • Organizations should introduce the terms as “Direct Deposit via ACH” and “Direct Payment via ACH” in print and electronic pieces and in verbal (conversational) and audio (radio / Podcast) communications.
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  • This is particularly important when communicating with new audiences.
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  • Then, through the course of the “conversation” – once the “via ACH” has been introduced, organizations could simply use Direct Deposit and Direct Payment.
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  • Again, this is about building a common awareness of ACH payments and their inherent value, which is supported by the underlying key messages.
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NACHA is also asking businesses, financial institutions and solution providers over time to use the phrase “via ACH” in conjunction with their own branded ACH payment offerings; how would this work?

  • In cases when the customer is presented with an ACH-based payment option that does not present it as “Direct Payment via ACH” and instead uses a branded product name such as SurePay or EZPay, for example, we are asking the organization to include the “via ACH” phrase.
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  • SurePay would be presented as “SurePay via ACH” and EZPay would be presented as “EZPay via ACH.”
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  • We understand that this cannot happen overnight and that organizations want to protect their individual brand identities.
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  • However, by including the “via ACH” – even as a secondary or subordinate message – customers will be able to more effectively associate the positive attributes of ACH payments and the inherent value of the ACH Network and Rules with these offerings; almost as second nature.
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NACHA has identified four core messages to be conveyed when referring to the ACH Network and ACH payments; can you tell me about them?

  • Message 1 defines the ACH Network: The ACH Network is the backbone for the electronic movement of money and other related data, providing a safe, secure, reliable network for direct consumer, business, and government payments.
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  • Message 2 describes Network inclusiveness: Large and small financial institutions of all kinds jointly govern and utilize the ACH Network, facilitating billions of payments such as Direct Deposit and Direct Payment.
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  • Message 3 positions the NACHA Operating Rules: The ACH Network is governed by fair and equitable rules that guide risk management and create certainty for all participants.
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  • Message 4 emphasizes Network innovation: As the migration from paper to electronic payment continues, the cost-effective ACH Network will grow and enable innovation that strengthens the industry with creative payment solutions.
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  • Again, these messages reflect the most important aspects upon which ACH payments are established (based on our research).
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  • The messages would not be used with every audience or in every communication, nor are they intended to be used verbatim.
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  • Organizations can use these core messages to guide their communications.
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How will financial institutions, solution providers, businesses and government agencies benefit from adopting the new ACH message and terminology?

Consistent use of the term “Direct Deposit via ACH” and “Direct Payment via ACH” increases customers’ understanding of the benefits ACH payments provide, including:

  • inherent reliability and certainty
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  • safety and security
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  • solid risk management foundation
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  • ease of use
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  • common expectations
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  • consumer protection and recourse
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  • cost-effectiveness (business clients)
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  • improved operational accuracy and efficiency (business clients)
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  • The core messages support this terminology and tell the story of ACH payments, the ACH Network, and the NACHA Operating Rules upon which they are built.
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  • “via ACH” helps customers to connect the dots – across ACH payment uses and offerings – instilling greater understanding and trust.
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  • With greater understanding and trust comes increased use of ACH payments.
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How will consumers benefit from the adoption of common ACH terms and messages?

  • Consistent use of the term “Direct Deposit via ACH” and “Direct Payment via ACH” increases consumer understanding and adoption of this safe, secure, convenient, and green payment method, supports awareness of enhanced payment products, and ensures improved user experiences.
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  • Adding the differentiating phrase “via ACH” helps consumers draw the connection between the positive attributes of trusted ACH payments and the ACH Network.
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  • underscores that the ACH Network is a safe, secure, reliable, and convenient Network for a range of direct account-to-account electronic payments, providing additional peace of mind for consumers.
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As part of its campaign to make the industry aware of the new messages and terminology, NACHA has launched a microsite as a resource for financial institutions, businesses and service providers. Can you tell me more about the benefits of the site and how it can be leveraged?

  • Created to help all payments industry participants develop a common understanding of ACH payments, the NACHA Operating Rules and the value of the ACH Network.
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  • Comprehensive, centralized industry resource containing communications tools and information to drive industry adoption and usage of the new messaging.
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  • direct.nacha.org provides the necessary tools for all financial institutions and businesses to communicate their use of the ACH Network and ACH payments.
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  • NACHA is inviting organizations to identify additional tools and resources that should be developed to help them communicate with customers. This is a living resource, and will grow organically as financial institutions, businesses, solutions providers, government agencies and others begin to actively use it.
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As a financial institution that sends and receives many ACH payments for its customers, what are your goals for the new ACH message and terms?

  • Numerous tools have been developed to help organizations describe ACH payments with terminology that both consumers and businesses will understand
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  • Encourage all participants to use and to incorporate these tools and phrasing into their communications
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  • Tell the story in a more focused way – create a common understanding of ACH
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What thoughts would you like to share with fellow financial institutions and others in the payments community about the new ACH messages and terminology?

  • NACHA is here to help.
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  • Provided support by creating language needed to speak concisely, consistently, and clearly about the benefits and opportunities of ACH payments.
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  • We understand that adoption will take time. We’re not asking organizations to change everything immediately. Each organizations has to determine the most practical and cost-effective way to incorporate the new terms and messages into their business environment.
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All of this is to help participants speak with their consumer and business customers about how to support their payments needs by harnessing the capabilities and reach of the ACH Network.