ACH Payroll Processing & Fedwire Blog

ACH Payroll Processing & Fedwire Blog

ACH Volume Growth Passes the 1 Billion Mark for Fourth Consecutive Year

Monday, March 18, 2019
ACH Volume Growth Passes the 1 Billion Mark for Fourth Consecutive Year

ACH processors completed more than 23 billion transactions in 2018, an increase of $1.5 billion transactions over 2017, according to NACHA, the organization that governs the ACH Network. It was the fourth straight year in which the volume grew by a billion transactions or more

That's the equivalent of 70 electronic payment transactions for every man, woman and child in the country, with a value 2.5 times greater than the U.S. Gross Domestic Product in 2017, the organization noted in its press release.

NACHA: ACH Growth Rate is Highest in a Decade

The value of the transactions in 2018 was $51.2 trillion, the sixth year in which total transaction value reached $1 trillion or more.

While ACH volume has grown consistently since it was introduced, last year's climb of 6.9% volume growth was the highest annual growth rate in a decade, the release says.

The transactions included a 4.4% increase in direct deposit ACH transactions, with 6.8 billion transactions that moved $9.7 trillion.

Other transaction types continued the growth trend as well, with the number of business-to-business (B2B) transactions and internet payments also measured in billions. Here is the 2018 breakdown by use:

  • Business-to-business (B2B) payments grew by 9.4% to 3.6 billion transactions with a value of $34.9 trillion
  • Direct Deposit payments grew 4.4% to 6.8 billion transactions with a value of $9.7 trillion
  • Internet payments grew 14.2% to 5.9 billion transactions with a value of $2.9 trillion
  • Payments from health plans to medical and dental providers grew 11.5% to 306.7 million transactions with a value of $1.59 trillion
  • Person-to-person (P2P) payments grew 32.2% to 128.7 million transactions with a value of $209.6 billion

Same Day ACH Volume Jumps 137% in First Full Year of Debits and Credits

The use of Same Day ACH processing also continued to grow, more than doubling in volume over 2017 as the volume included a full year of ACH debits which were introduced in October 2017. There were 98.3 million Same Day ACH credits and 79.7 million debits, NACHA reported. The transactions were valued at $159.9 billion, up 83% from 2017.

The growth of same-day processing, which has been rolled out in phases that began in 2016, is expected to continue its climb as NACHA implements rules that that will widen its availability with expanded hours and dollar amounts.

Secure and Reliable ACH Processing for Payroll

At Cachet Financial Services, we provide ACH processing and directly related services to the payroll industry, a role in which we have been innovators in both services and technology since our inception. We process approximately $150 billion annually in ACH transactions for more than 110,000 employers, securely, cost-effectively and using a patented system of automation that provides a level of accuracy and efficiency that is unmatched in the industry.

Our clients also have access to an entire array of payroll solutions through our sister companies Payroll Tax Management, Time Rack and SBS Payroll.

To learn more about what we can do for you, call us or click on the link below.

Contact us today to learn more about same-day ACH direct deposit for payroll


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