What does NACHA Article One primarily define?

NACHA Article One primarily defines the operating rules for Automated Clearing House (ACH) transactions. This body of rules establishes the framework within which ACH payments are processed, ensuring that all parties involved—originators, financial institutions, and receivers—understand their responsibilities and the procedures that govern these transactions.

By defining these operating rules, NACHA facilitates a standardized approach to ACH payments, which is essential for ensuring the smooth and secure transmission of electronic payments. It covers aspects such as transaction types, responsibilities of participants, and general operational procedures, all of which are crucial for maintaining the integrity of ACH systems.

In contrast, while security procedures for ACH, guidelines for electronic funds transfer, and compliance measures for BSA are important areas, they are not the primary focus of Article One. Security procedures might be covered in a different article or section, guidelines for electronic funds transfer have a broader scope beyond just ACH, and compliance measures relate specifically to the Bank Secrecy Act, which is not the main concern of Article One's operating rules.