NACHA File/ACH File Definition

A file formatted to NACHA specifications, which contains instructions for transferring funds between accounts. It is a payroll file that is used to make direct wage deposits to employee accounts.

NACHA File/ ACH File Extended Definition
A file created in a NACHA (National Automated Clearing House Association) format is a NACHA file. It is used to transfer funds electronically.

In the context of payroll, a NACHA file is used to deposit funds directly to employee accounts. NACHA is the industry watchdog of the ACH (Automated Clearing House) Network, which provides a secure network for the electronic movement of funds across accounts.

NACHA establishes payment transfer rules that financial institutions must follow to ascertain reliable and secure fund movement for all participating accounts. A NACHA file is one of the direct deposit solutions that employers can use to make direct payroll transfers. It helps disburse payroll and other payments in a simple manner and with greater control.

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Last Updated By

Rachel Blakely-Gray | Apr 28, 2023

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