Nacha, the ACH payment processing network’s governing body, has set out to dispel myths about the IS0 20022 financial messaging standard with an all-new white paper, published as part of the associations education programme as the US market looks to convert its existing ACH network to meet the new standard.
According to Nacha, there is currently a “frenzied dialogue” underway between financial institutions, businesses and processing providers, something which has so far led to a lot of confusion as to what exactly the new standard is and how it will affect the ACH network.
Managing director of Q Insights and author of the paper, Nasreen Quibria, said: “Having worked on ISO 20022 conversion for the US wire system as well as consulted extensively on ISO 20022 in the ACH Network, I have witnessed firsthand the misconceptions about the message standard. This paper serves as a resource to educate the industry and support its adoption.”
The white paper also contains best practice guidance for interim steps to integrate current ACH formats with the ISO 20022 standard, as well as outlining the challenges and benefits of converting current formats for US Network transactions.
“The purpose of this white paper is to provide clarity regarding the promises, strategies, myths and roadblocks for ISO 20022 and payments,” said managing director of network development at Nacha, George Throckmorton.
Adding that “Issuing the paper is part of Nacha’s ongoing efforts to meet the needs of the present by providing industry tools and solutions to assist with ISO 20022 ACH integration while preparing for the future by continuing to monitor, explore and engage with market participants around the possibility of ISO 20022 ACH conversion.”
The white paper is available to download from the ISO 20022 Resource Center, published on Nacha’s website. In addition to the paper itself, this section of their site also has an ISO 20022 questions form, allowing you to easily contact Nacha to resolve any queries you may have about the standard.