News

Contacts:

• Michael Herd
  703/561-3924
  mherd@nacha.org
• Julie Helund
  703/561-3915
  jhedlund@nacha.org

Dallas, Texas, April 15, 2002 - The Internet Council of NACHA - The Electronic Payments Association is beginning a study of Automated Clearing House (ACH) data security and network integrity issues, NACHA announced at its PAYMENTS 2002 conference. The Council intends to develop recommendations that will serve as the basis for future operating rules and industry education necessary to ensure the continued security and integrity of the ACH Network. "The rapid adoption of Internet-initiated ACH payments makes a review of ACH data security and integrity very timely," said David L. Merritt, Chairman of the Internet Council and vice president and product design manager in the New Business Development Group of Mellon Global Cash Management. "Other technologies, such as biometrics and wireless, may also impact ACH security considerations."

Some of the issues the ACH Security project will address include:

• Secure transmission of ACH files;
• Network security for secure storage of ACH information;
• Secure capture of financial information;
• Guidelines for authentication of ACH payments;
• Applicability of existing rules for Internet-initiated ACH debits to corporate payments;
• Security standards appropriate for inclusion in the NACHA Operating Rules.

The Internet Council's ACH Security project will report its recommendations to NACHA by December 2002. Interested parties are encouraged to contact the Council at http://internetcouncil.nacha.org. The Internet Council played a significant role in the development of NACHA Operating Rules for consumer e-checks initiated via the Internet. NACHA estimates that there were 75 million Internet e-checks, worth more than $16 billion, from March 16, 2001, the date the application became available, through December 31, 2001.

The Internet Council was established in 1996 to facilitate the development of global electronic commerce by enabling business, governments and consumers to utilize present and future payments over open networks in a secure and cost-effective manner. The Internet Council has more than 100 members including financial institutions, companies, technology providers and government agencies.

About NACHA - The Electronic Payments Association
NACHA is the leading organization in developing electronic solutions to improve the payments system. NACHA represents more than 12,000 financial institutions through direct memberships and a network of regional payments associations, and 650 organizations through its industry councils. NACHA develops operating rules and business practices for the Automated Clearing House (ACH) Network and for electronic payments in the areas of Internet commerce, electronic bill and invoice presentment and payment (EBPP, EIPP), e-checks, financial electronic data interchange (EDI), international payments, and electronic benefits transfer (EBT). Visit NACHA on the Internet at www.nacha.org.