Capital One Financial Corp of Falls Church, Va., has joined Nacha, an association that makes rules governing automated clearing house and other electronic transactions.

The association's members vote on automated clearing house operating rules and other electronic payments standards, and financial institutions are eligible to serve on its board of directors.

Capital One, whose primary business is credit cards, joined "to help improve payment processes for customers, so customers can pay us through whatever channel they choose and are not just limited to paper checks," said Diana Sun, director of consumer affairs. "We are very excited to help develop innovations in payment applications." She added that Capital One has not yet decided whether to join Nacha's board of directors.

Nacha's voting membership requirements for financial institutions were eased after it reorganized last year, but Nacha did not begin approaching new bank candidates until November, said Michael Herd, director of public relations.

Capital One is the newest member since the reorganization. Nacha now has nine bank members, including Capital One, and another 10 to 12 have expressed interest in joining, said Bill Nelson, executive vice president of Nacha.

Of the group's 30 members, 21 are payments associations. Its other banking company members are Bank of America Corp., Bank One Corp., Citigroup Inc., First Union Corp., J.P. Morgan Chase & Co., Mellon Financial Corp., Wachovia Corp., and Wells Fargo & Co.

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