Reports Show The ACH Network Big Streak Will Continue

Reports Show The ACH Network Big Streak Will Continue

The ACH network’s big streak continues and is expected to experience even bigger gains for same-day volume. According to new reports by NACHA, the regulatory body for the ACH, transactions on the nation’s automated clearing house network exceeded 5.6 million in the quarter ended September 30 – a 6.7 percent increase, compared to the same

The ACH network’s big streak continues and is expected to experience even bigger gains for same-day volume. According to new reports by NACHA, the regulatory body for the ACH, transactions on the nation’s automated clearing house network exceeded 5.6 million in the quarter ended September 30 – a 6.7 percent increase, compared to the same quarter in 2017.

According to NACHA, this third-quarter growth means volume as increased more than 5% year-over-year in thirteen out of the last fifteen quarters on the network. This increase comes just one year after the start of same-day debit processing and two years from the addition of same-day credits.

What does this mean? Faster payments on the ACH network links virtually every bank in the country. Same-day transactions clear and settle the day there are initiated, rather than the next day. In the quarter, same-day transactions totaled 43.2 million – a 192 percent increase over the third quarter last year.

“More people than ever are benefiting from same-day ACH,” said Jane Larimer, chief operating officer at Herndon, Va.-based NACHA, in a statement. “With the enhancements to same-day ACH, the ACH Network is delivering the capabilities requested by corporate end-users.”

According to updates, the changes in ach debit transaction do not stop there. This summer, the NACHA announced more changes in same-day processing that will usher in faster funding availability, an increased dollar limit for each transaction and extended processing hours. The association shared that it expects these changes will also drive up same-day volume even more sharply.

In the first half of 2018, same-day transactions totaled 83.5 million. According to NACHA figures, this is a big jump from 25.2 million same-day credits seen the first half of last year. NACHA says it is considering lifting the per-transaction limit on same-day transactions to $100,000 from $25,000.

There has also been a growth surge in peer-to-peer payments (P2P) and WEB debits. The network processed 29.4 million P2P transactions in the second quarter, a 24 percent increase year-over-year. A closely watched payment category, P2P has experienced explosive growth at companies like PayPal Holdings Inc. WEB debits, which include ecommerce payments, also grew substantially in the quarter (up 14% to 1.44 billion).

Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.

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