ACH APIs (Application Program Interfaces)

The larger list of 16 APIs contains three priority use case categories – solicited during the inaugural meeting of the API Standardization Industry Group – of Fraud and Risk Reduction, Data Sharing, and Payment Access, and are as follows:

Fraud and Risk Reduction

• API: Account Validation
• API: Federal and State Tax Payment Receiver Account Validation for Credit Payments
• API: Get Bank Contact Information
• API: Industry Notification of Account Closure
• API: Payer and Payee Identity Verification
• API: Request Account Token

Data Sharing

• API: Credit Decisions
• API: Get Account Balance
• API: Get Account History
• API: Marketing Purpose
• API: Single Sign On 

Payment Access

• API: Financial Institution Approval/Enrollment of ACH Originators
• API: Human-to-Machine (Internet of Things)
• API: Interoperability
• API: Real-Time Messaging and ACH Network Interoperability for “Credit Push” Payments
• API: Transaction Status

During the meeting, the Group also scored the 16 APIs to determine those to develop first. Scoring was based on a series of criteria to help determine success probability and ranged from measures such as the cost to implement and potential return on investment, to significance of the pain point, or opportunity the API addresses and its impact on the security of transactions. The following were identified as the APIs for initial standards development:
 

• API: Account Validation/API: Federal and State Tax Payment Receiver Account Validation for Credit Payments*
• API: Get Account Balance/API: Get Account History**
• API: Get Bank Contact Information
• API: Interoperability
• API: Transaction Status 

“Work in the API Standardization Industry Group is progressing rapidly,” said George Throckmorton, Managing Director, Network Development & Strategic Initiatives at NACHA, and API Standardization Industry Group lead. “To assess the payments pain points and opportunities of today, identify the possible APIs to address those pain points and opportunities, and then ultimately select the APIs to develop first, in such a short amount of time, is truly commendable. We are excited with the progress to date and look forward to continuing our work to bring API standardization to the U.S. financial services industry.” 
 
The latest meeting of the API Standardization Industry Group, held Aug. 24, brought together 60 leaders from more than 40 financial institutions, businesses, fintechs, and service provider organizations. In addition to determining the initial APIs for development, Group participants also discussed next steps to ensure timely development and deployment of the APIs as part of the API Playbook.   

For detailed information on the outcomes of the August meeting, including specifics of the 16 APIs as well as the Group’s next steps, download the API Standardization Industry Group Meeting Summary Report. For a high-level overview of the 16 APIs, download the API Overview document.

The next meeting of the API Standardization Industry Group will be held Oct.11 in New York. With priorities in place, the Group will begin work on developing the initial five APIs. The API Standardization Industry Group Meeting will be held in conjunction with the Payments Innovation Alliance Meeting. The Alliance meeting will take place Oct.11-13 at the Westin New York in Times Square. Alliance Meeting attendees will be able to learn about and engage in discussions on payment trends such as APIs and faster payments, new/disruptive technology, and challenges that impact both U.S. and non-U.S. organizations.
 
About the API Standardization Industry Group
The API Standardization Industry Group is a diverse group of organizations and individuals working to support advancement and use of standardized APIs within the U.S. financial services industry. The Group is made up of leaders from financial institutions, fintechs, businesses, service providers, standards organizations and others, all of whom have a desire to further efforts to standardize the use of APIs in the U.S. The API Standardization Industry Group is sponsored by NACHA’s Payments Innovation Alliance. For more information or to join, visit https://www.nacha.org/content/api-standardization-industry-group.
 
The Payments Innovation Alliance
The Payments Innovation Alliance, a membership program of NACHA—The Electronic Payments Association®, brings together diverse, global stakeholders to support payments innovation, collaboration, and results through discussion, debate, education, networking and special projects that support the ACH Network and the payments industry worldwide. The Alliance brings together content and focus across all payments areas, including APIs and other emerging payments technologies, mobile initiatives, tokenization and account validation, and global payments. Membership includes organizations of all sizes and spans the payments industry spectrum. Visit https://www.nacha.org/content/payments-innovation-alliance for more information.

**API: Get Account Balance and API: Get Account History scored similarly, and because the APIs are closely related, they will be combined and developed as a single API.