Nov 19, 2013 Dave King
As ACH cards and other automated wire transfer services become more popular among organizations in a variety of industries, security continues to be one of the gravest concerns of regulators and payment processing advocates. Businesses need to ensure that they are adequately protecting financial data and systems that are being used to carry out electronic payments and automated transactions.
The Electronic Payments Association (NACHA) recently called upon businesses and payment processing firms to communicate their questions, comments and concerns about the proposed rules to adjust ACH network quality. NACHA is responsible for managing, administrating and governing the ACH network, which is one of the more critical aspects of the modern electronic payments landscape.
The organization explained that the first proposal would improve its ability to identify and enforce rules that cover certain entities, while expanding its authority. This primary proposal would also help establish a clear set of standards when it comes to ACH network use. NACHA's officials noted that the second proposal was launched to improve the quality of ACH networks to further bolster ease-of-use and efficiency.
"As administrator of the ACH Network, NACHA is using existing processes and initiating this rulemaking proceeding to improve ACH payments and complement the efforts of regulators around high-risk origination," Janet Estep, NACHA's chief executive officer, explained. "These current rule proposals support our holistic and interconnected approach to ensure continued confidence in ACH payments and the ACH Network."
Businesses that are either already using ACH cards or are considering electronic payment implementation should keep abreast of discussions among advocates, enforcement agencies and lawmakers. By being as proactive as possible when establishing and launching an electronic payment processing strategy, security risks can be dramatically reduced and management responsibilities can be streamlined.