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NACHA File/ACH File Definiton

December 5, 2014

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

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 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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