Automated Clearing House (ACH)

Reliable, efficient and predictable electronic payments

Bank of America’s Automated Clearing House (ACH) is an electronic payment delivery system that allows you to pay or collect funds electronically through the ACH network — one of the world’s safest, most reliable payment networks. With greater speed, accuracy and efficiency, ACH offers more control over the timing of payments posting to your bank accounts. Use ACH to help improve forecasting, reduce exposure to check fraud, cut expenses and get faster access to funds.

Fraud prevention with ACH

Switching from checks to ACH can greatly help reduce risks. Our fraud prevention tools can protect you against unauthorized transactions to your accounts.

ACH Positive Pay with mobile approvals

Take control of ACH transactions received in your accounts. Automatically accept authorized transactions from trading partners, decide whether to pay or return ACH exceptions in real-time, and update your ACH authorizations. Exceptions that require either primary or secondary approval, or both, can also be approved using your mobile device.

Account Validation

Prior to initiating electronic credits or debits in the U.S., our Account Validation service can help you validate whether a bank account is open and if it belongs to the person authorizing payment to or from the account. The service can also help you to comply with the Nacha WEB Debit Account Validation rule that went into effect on March 19, 2021. With this new rule, ACH Originators of WEB debit entries are required to use a “commercially reasonable fraudulent transaction detection system” to screen WEB debits for fraud. The supplemental requirements apply to the first use of an account number, or changes to the account number. Please visit Nacha.org for full rule details and/or rule modifications.

Ways to use ACH

Make and receive a wide range of recurring and nonrecurring payments.

 

Direct deposit: Pay employees and other consumers
Consumer receipts: Collect utility bills, insurance premiums, mortgage payments and more
Business payments: Send funds to suppliers and other B2B counterparties
Tax payments: Make federal, state and local tax payments
Cash concentration: Consolidate funds from various locations
Cross-border: Connect in Canada, Mexico, Panama and Europe

How ACH works

While most ACH transactions post on the following day, we offer same-day posting for eligible transactions destined for accounts at Bank of America and other Receiving Depository Financial Institutions.

 

Learn more about Same-Day ACH > 

 

It’s easy to ACH payments and receipts via CashPro® ACH, CashPro® Connect and CashPro® API. You can create and deliver a standard ACH-formatted file using your business software, a payroll vendor or our ACH service.

Nacha rule changes

The following are select Nacha Operating Rule changes. To access the full list of Nacha Operating Rules, visit Nacha.org.

MARCH 18, 2022

Same Day ACH Dollar Limit increase from $100,000.00 to $1,000,000.00

The Same Day ACH Dollar Limit Increase rule will increase the per-transaction dollar limit from $100,000 to $1,000,000. At implementation, both Same Day ACH credits and Same Day ACH debits will be eligible for same-day processing up to $1,000,000 per transaction.

SEPTEMBER 16, 2022 and MARCH 17, 2023

The proposed rule amendment on Micro-Entries was approved on February 1, 2022.

 

This Rule:

  • Defines “Micro-Entries” as ACH credits of less than $1 and any offsetting ACH debits used for the purpose of verifying a Receiver’s account
  • Company Name requirements for Micro-Entries
  • Establishes other Micro-Entry origination practices
  • Applies risk management requirements to the origination of Micro-Entries

 

This Rule will become effective in two phases:

Phase 1 – SEPTEMBER 16, 2022

The term Micro-Entries will be defined, and Originators will be required to use the standard Entry description and follow other origination practices. 

 

Phase 2 - MARCH 17, 2023

Originators of Micro-Entries will be required to use commercially reasonable fraud detection, including the monitoring of Micro-Entry forward and return volumes.

 

Learn more about Micro-Entries

SEPTEMBER 30, 2022
Nested Third-Party Sender

This rule will define a Nested Third Party Sender, and will provide for the “chain of agreements” and responsibilities in Nested TPS arrangements.

  • A “Nested Third-Party Sender” will be defined as a Third-Party Sender that has an agreement with another Third-Party Sender to act on behalf of an Originator, and does not have a direct agreement with the ODFI.
  • Nested TPSs will be addressed in ACH Origination Agreements

 

The overarching purpose of these Rules is to further clarify the roles and responsibilities of Third-Party Senders (TPS) in the ACH Network by:

  • Addressing the existing practice of Nested Third-Party Sender relationships, and
  • Making explicit and clarifying the requirement that a TPS conduct a Risk Assessment.

 

The two Rules will become effective September 30, 2022, with a 6-month grace period for certain aspects of each rule.

 

This rule amendment will further provide that:

  • An ODFI will identify in Nacha’s Risk Management Portal all Third-Party Senders that allow Nested Third-Party Sender relationships.
  • Upon request, an ODFI will provide Nacha with the Nested TPS relationships for any TPS.
  • Identification of TPSs with Nested Third-Party Senders in the Risk Management Portal will follow the same time frames as registering TPS in the Portal:
  • TPS with Nested TPS will be registered as such within the later of 30 days of Transmitting the first Entry, or within 10 days of the ODFI becoming aware of the Nested TPS.
  • Registration information will be updated within 45 days of any change to the information previously provided.

JUNE 30, 2022

Supplementing Data Security – Phase 2: Transmission Volume Exceeds 2 Million Transactions Annually

The Supplemental Data Security Requirements rule expands the existing ACH Security Framework (NACHA Rule Section 1.6) to explicitly require large, non-financial institution Originators, Third-Party Service Providers, and Third Party Senders to protect account numbers used in the initiation of ACH entries by rendering them unreadable when stored electronically. The rule applies only to account numbers collected for or used in ACH transactions.

 

Going forward after calendar year 2021, any Originator, Third-Party Service Provider, or Third-Party Sender that originates 2 million or more ACH transactions in any calendar year will need to be compliant with the rule by June of the following calendar year. 

Speak with your Bank of America representative to learn more.