Which format is promoted in the United States for transaction processing?

The STP 820 format is specifically designed for electronic payments and remittance information in the United States, making it a standard format adopted for transaction processing, particularly in the accounts receivable and payment processing realms. It facilitates the transmission of payment details, including invoice numbers and other pertinent information related to the transactions. This format allows for efficient Straight-Through Processing (STP), minimizing manual intervention and errors, which is crucial for optimizing cash flow and improving operational efficiencies in organizations.

In contrast, the other formats listed serve different purposes or are oriented towards varying types of transactions or processes. ISO 20022 is an international standard focusing on financial services messaging across different domains, but it’s broader and not specific to the type of transaction processing promoted in the U.S. NACHA 835 relates to healthcare claims payments and remittance advice but is more specific to the healthcare industry rather than general transaction processing. ACH 720 is a less common format associated with payment orders rather than the mainstream transaction processing promoted for accounts receivable practices. Thus, STP 820 stands out as the more suitable choice for transaction processing in this context.