Transact, the leader in innovative payment solutions for a connected campus, today confirmed its current encryption features comply with a new National Automated Clearing House Association (Nacha) Rule on Supplementing Data Security Requirements. The Rule requires bank account numbers used in the initiation of ACH transactions to be rendered unreadable when stored electronically. Transact and its payments solutions clients are fully compliant in advance of the June 30, 2021, effective date of Phase 1 of the Rule’s two-phase introduction.
Phase 1 of the Rule on Supplementing Data Security Requirements applies to ACH Originators and Third-Parties with more than 6 million ACH payments annually; Phase 2, in effect one year after Phase 1, applies to those same parties with 2 million ACH payments annually. Transact processes 8 million ACH payments each year.
“Transact protects sensitive data at rest and in transit using industry standard encryption technologies and best practices,” said Laura Newell-McLaughlin, chief of staff, Transact. “As a result, clients using Transact Payments are already compliant with the new mandate.”
Transact recently announced it had completed preparation for a new Nacha WEB Debit Account Validation Rule, one year ahead of the regulatory requirement. That rule requires bank account number validation to be a mandatory part of fraudulent transaction detection when processing ACH payments.
Last fall, Transact successfully completed its Nacha ACH Rules Compliance Audit that confirmed compliance with Nacha rules for safeguarding customers’ sensitive financial and non-financial data and ensuring ACH transactions are handled smoothly and securely.
Transact is the leader in innovative payment solutions for a connected campus. Its highly configurable, mobile-centric campus technology ecosystem simplifies the student experience across the full spectrum of student life. Transact’s offerings include integrated solutions for tuition and other student expense payments, multi-purpose campus IDs, and campus commerce. With a long-standing reputation of serving the higher education community, Transact proudly assists millions of students each year with its innovative products and solutions. For more information, visit www.transactcampus.com.