ACH Transaction Volume Grew in 4th Quarter Despite Tough Economy, NACHA Reports

The number of ACH payments in the 4th quarter 2008 grew by 4.5 percent over the same period in 2007, topping 3.8 billion, according to statistics released by NACHA – The Electronic Payments Association.

Internet-initiated ACH payments (known as “WEB” entries) experienced robust growth, increasing 16.5 percent over 4th quarter 2007 volumes. Strong growth also occurred with certain business-to-business payments (known as “CTX” entries) in which remittance information is exchanged electronically. The number of these payments grew by 15 percent over 4th quarter 2007 levels.

“The continued growth of ACH transactions during a period of intense economic pressures speaks to the fundamental value that financial institutions, businesses, governments, and consumers recognize in the ACH Network,” said Janet O. Estep, NACHA president and chief executive officer. “The inherent safety, security, and efficiency of the ACH Network are resonating, as seen through the growth in specific market segments.”

Popular with billers and consumers for paying bills online, the number of WEB transactions in the 4th quarter 2008 reached 552 million, and accounted for $220 billion in transfers.

In the business-to-business segment, the number of CTX payments in the 4th quarter 2008 was 14.4 million, for $691 billion. More than 195 million electronic remittance records moved with these payments.

Other areas of “native” electronic payments – those that are not tied to consumer check-writing, such as Direct Deposit and pre-authorized consumer payments — experienced modest growth, which is positive given the current economic conditions.

The newest check conversion transaction – back-office conversion (known as “BOC”) – grew to over 39 million payments in 4th quarter 2008, from 3 million payments a year ago, as several national retailers are implementing BOC programs. BOC volume increased 49 percent from 3rd to 4th quarter 2008. Other ACH payment types tied directly to consumer check writing have leveled off as the use of checks continues to decline.

“Eighty percent of ACH Network volume is not related to check conversion activity,” added Estep, “And opportunities exist for greater adoption of all native ACH payment types as the safe, secure, and green attributes of ACH are embraced by businesses and consumers.”

NACHA—The Electronic Payments Association
NACHA—The Electronic Payments Association is a not-for-profit association that oversees the Automated Clearing House (ACH) Network, one of the largest electronic payment networks in the world. More than 18 billion ACH payments were exchanged in 2007. NACHA is responsible for the administration, development, and enforcement of the NACHA Operating Rules and sound risk management practices for the ACH Network. Through its industry councils and forums, NACHA brings together hundreds of diverse payments system stakeholder organizations to enable the development of new network services and applications. NACHA represents more than 11,000 financial institutions through direct membership and 19 regional payments associations. NACHA and its members provide education, tools, and resources to increase the adoption of ACH payments to benefit businesses, consumers, and governments.