ABA Routing Numbers and NACHA Compliance
NACHA is an industry trade organization and the administrator of the Automated Clearing House (ACH) Network, responsible for authoring ACH operating rules, and performing rules enforcement and risk management. The NACHA Operating Rules provide the legal foundation for the exchange of ACH payments and ensure that the ACH Network remains efficient, reliable, and secure for the benefit of all participants.
Validate ABA Routing Numbers
To reduce the number of administrative returns entered in the ACH Network, NACHA compliance requires companies originating ACH transactions to use commercially reasonable procedures to verify that routing numbers are valid for WEB and TEL ACH transactions.
One way to do this is to verify the length and the check digit of the routing number, and to make sure it is properly formed. However, this verification/validation will not prevent the use of numbers that pass the verification even though they are retired or just plain wrong.
Options for Compliance
Lyons Commercial Data offers two excellent options for payment processors to achieve NACHA compliance and perform ABA Number Verification at a reasonable cost per transaction. The iBankRegistry Routing number database
is available by subscription as an FTP download or via an XML Web Service.
As an added bonus, subscribers can access iBankRegistry data online
when performing research on failed payments. Lyons iBankRegistry online database access provides flexible search capabilities, yielding accurate results with limited information including partial bank routing numbers and previously used bank routing numbers
. Registered users receive instant access to detailed bank information including phone and fax numbers.