Summary Meeting Report and Overview Document released by NATCHA

The API Standardization Industry Group, formally created in spring 2017, is working to further efforts to standardize the use of APIs in the US financial services industry by creating an “API Playbook” or standards framework. In support of that effort, during its most recent meeting, the API Standardization Industry Group named the first five APIs – from a larger list of 16 – that it will develop to support payments industry advancement.

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

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, readers can download the API Standardization Industry Group Meeting Summary Report. For a high-level overview of the 16 APIs, readers also can 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 US and non-US organizations.

The API Standardization Industry Group is a diverse group of organizations and individuals working to support advancement and use of standardized APIs within the US financial services industry. The Group is made up of leaders from financial institutions, fintechs, businesses, service providers, standards organizations and others. The API Standardization Industry Group is sponsored by NACHA’s 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.