NACHA Reports Nearly 16 billion ACH Payments in 2006

Nearly 16 billion automated clearing house (ACH) payments were made in 2006, a 14.5 percent increase over 2005, according to statistics compiled by NACHA – The Electronic Payments Association and issued today at the PAYMENTS 2007 conference.

"Annual ACH payment volume continues to double every 5 years, and growth is occurring across all transaction categories," said Elliott C. McEntee, President and CEO of NACHA. "The growth of the ACH Network shows the value that financial institutions and their customers experience from ACH payments."

The nation’s financial institutions originated 15.4 percent more ACH payments in 2006 than in 2005. The number of these payments was 14.98 billion, a jump of more than 2 billion over 2005, and valued at $30.3 trillion. Inter-bank ACH payments — those sent from one financial institution to another — increased by 16.5 percent in 2006; on-us payments — those that remain within a single financial institution — increased by 12.2 percent.

The remaining ACH payments were originated by the Federal government, which exceeded 1 billion ACH payments in a year for the first time. The Federal government’s ACH volume was up 2.8 percent over 2005, and valued at $3.5 trillion.

ACH payments include Direct Deposit of payroll, Social Security benefits and tax refunds, Direct Payment of consumer bills, bill payments by Internet and telephone, check conversion, business-to-business payments, and Federal tax withholdings.