Check truncation and ACH trends. (automated clearing houses) Healthcare Financial Management | July 1, 1993| | COPYRIGHT 1993 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information) Copyright

Continued record growth in the number of checks processed by automated clearing houses (ACH) is prompting changes in the way checks are processed.

The National Automated Clearing House Association (NACHA), the National Association for Check Safekeeping (NACS), and the Federal Reserve Bank are involved in an electronic check truncation pilot program. Check truncation is a check clearing process in which the paper check is stopped (truncated) at the first bank of deposit or at an agent of a collecting bank. Truncation is the first step in developing a system that could ...

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