Nacha Announces LexisNexis® Risk Solutions as Preferred Partner for Official Registrar of Routing Numbers

Rhea-AI Summary

Nacha has announced LexisNexis® Risk Solutions as its exclusive Preferred Partner for the Official Registrar of Routing Numbers. This partnership aims to enhance the ACH Network's efficiency and reliability by providing accurate and up-to-date routing data. Michael Herd, Executive VP of ACH Network Administration at Nacha, emphasized the importance of accurate routing data for ACH payments.

LexisNexis Risk Solutions offers the Bankers Almanac® Routing Transit Number (RTN) File, which provides vital data on nearly 10,000 U.S. financial entities and over 100,000 branches. This tool is important for U.S. payments professionals, enabling efficient banking information searches and helping to reduce failed payments. The partnership aims to improve customer experience and operational efficiency in the ACH Network.

Positive

• Partnership with LexisNexis Risk Solutions enhances ACH Network efficiency
• Access to accurate, up-to-date routing data for ACH Network participants
• Potential reduction in failed payments and improved payment processing
• LexisNexis Risk Solutions provides data on nearly 10,000 U.S. financial entities

Negative

• None.

Insights

Financial Technology Expert

This partnership between Nacha and LexisNexis® Risk Solutions is a significant development for the ACH Network, which processes billions of transactions annually. By providing up-to-date routing data, LexisNexis can help reduce payment failures and improve operational efficiency across the network. This is particularly important as the volume of digital payments continues to grow.

The collaboration addresses a critical pain point in the payments industry: inaccurate routing information leading to failed transactions. By becoming the exclusive Preferred Partner for routing numbers, LexisNexis gains a competitive advantage in the fintech space. This could potentially lead to increased revenue streams and market share for RELX, LexisNexis' parent company.

For investors, this partnership signals RELX's commitment to expanding its presence in the lucrative financial data and risk management sector. While the immediate financial impact may be , the long-term potential for growth in this area is substantial, especially as financial institutions increasingly rely on accurate data for compliance and operational purposes.

Payment Systems Analyst

The designation of LexisNexis® Risk Solutions as Nacha's Preferred Partner for routing numbers is a strategic move that strengthens the integrity of the ACH Network. This partnership addresses a important aspect of payment processing by ensuring that routing data is consistently accurate and up-to-date.

From a technical standpoint, this collaboration could significantly reduce the number of failed ACH transactions due to outdated routing information. This improvement in payment efficiency could lead to cost savings for financial institutions and better experiences for end-users. The partnership also positions LexisNexis as a key player in the ongoing digitization of financial services.

For RELX investors, this development underscores the company's ability to leverage its data assets in high-value applications. While the direct revenue impact may not be immediately substantial, the strategic positioning in the payments infrastructure space could lead to long-term growth opportunities and enhanced market perception of RELX's fintech capabilities.

RESTON, Va.--(BUSINESS WIRE)-- Nacha is proud to welcome LexisNexis® Risk Solutions as the exclusive Preferred Partner in the category of Official Registrar of Routing Numbers. With its comprehensive and up-to-date routing data, LexisNexis® Risk Solutions joins a distinguished group of organizations working with Nacha to enhance the ACH Network's efficiency and reliability.

"Accurate ACH payment routing relies on the availability and use of accurate and up-to-date routing data," said Michael Herd, Executive Vice President of ACH Network Administration at Nacha. "We look forward to working with LexisNexis Risk Solutions as a Nacha Preferred Partner to enable ACH Network participants to have the best and most up-to-date routing data."

Account validation providers that fail to keep current with routing number changes end up relying on outdated information which can result in a valid routing number being inaccurately rejected. That, in turn, blocks the creation of ACH payments. By partnering with Nacha, LexisNexis Risk Solutions is allowing more participants in the ACH Network to access accurate, up-to-date payment information, ensuring that payments are processed in a timely manner and reducing the likelihood of failed payments.

"The ACH Network underpins the U.S. payments industry, but inaccurate or outdated data can still lead to failed payments," said Edward Metzger, Vice President, Payments Efficiency for LexisNexis Risk Solutions. "We are the source of all routing numbers required for processing payments through the ACH Network. Our partnership with Nacha helps ACH users receive the most up-to-date data continuously, enhancing customer experience and operational efficiency."

The LexisNexis® Bankers Almanac® Routing Transit Number (RTN) File enables efficient banking information searches for setting up, investigating and correcting payments. It offers vital, up-to-date data on financial institutions and payment routing details for nearly 10,000 U.S. financial entities and more than 100,000 branches and locations, making it an essential tool for U.S. payments professionals.

The American Bankers Association designated Bankers Almanac®, now part of LexisNexis Risk Solutions, as the registrar more than one hundred years ago. Today, it continues to serve as the official registrar of routing numbers in the U.S.

Nacha's Preferred Partner Program features organizations that support the payments industry by providing products and services that align with Nacha's core strategies. To learn more about the Nacha Preferred Partner program, visit Nacha’s Preferred Partner page.

About Nacha

Nacha governs the thriving ACH Network, the payment system that drives safe, smart, and fast Direct Deposits and Direct Payments with the capability to reach all U.S. bank and credit union accounts. There were 31.5 billion ACH Network payments made in 2023, valued at $80.1 trillion. Through problem-solving and consensus-building among diverse payment industry stakeholders, Nacha advances innovation and interoperability in the payments system. Nacha develops rules and standards, provides industry solutions, and delivers education, accreditation, and advisory services.

About LexisNexis® Risk Solutions

LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241021713872/en/

Dan Roth

Nacha

571-579-0720

media@nacha.org

Source: Nacha

FAQ

What is the significance of LexisNexis Risk Solutions becoming Nacha's Preferred Partner for routing numbers?

LexisNexis Risk Solutions becoming Nacha's Preferred Partner for routing numbers is significant as it provides ACH Network participants with access to accurate and up-to-date routing data, enhancing the efficiency and reliability of ACH payments and potentially reducing failed transactions.

How does the LexisNexis Bankers Almanac RTN File benefit the ACH Network?

The LexisNexis Bankers Almanac RTN File benefits the ACH Network by offering vital, up-to-date data on nearly 10,000 U.S. financial entities and over 100,000 branches, enabling efficient banking information searches for setting up, investigating, and correcting payments, thus improving operational efficiency.

What problem does the partnership between Nacha and LexisNexis Risk Solutions aim to solve?

The partnership aims to solve the problem of inaccurate or outdated routing data leading to failed ACH payments. By providing continuous access to the most up-to-date data, it enhances customer experience and operational efficiency in the ACH Network.