Demand for ACH processing is substantial and growing, first quarter data released by the Electronic Payments Association® shows.
With 5.7 billion ACH debit and credit transactions processed in the first quarter of 2018, ACH transactions posted a 5.9% increase over the same period in 2017, according to a press release issued by NACHA, the association that administers the ACH network and serves as a not-for-profit association of the payment industry.
The number of same-day transactions also saw substantial growth, with 42.6 million same-day ACH payments in the first quarter, an increase of 220% increase from the same quarter last year.
The growth in same-day transactions took place over a period that ended just two weeks after phase 3 of same day implementation went into effect. NACHA launched the first phase of its effort to introduce same-day processing in September 2016 and the second phase one year later.
Same day business-to-business ACH payments averaged 10,000 transactions a day during the first month of Phase 2 processing last September and have grown exponentially since.
Direct Deposit ACH Continues to Grow
The increase in overall ACH transactions, was mostly due to growth in direct deposit payroll, internet, and business-to-business transactions.
NACHA Chief Operating Officer and General Counsel Jane Larimer, said the growth showed that the ACH network was providing a "substantial value to consumers, businesses and financial institutions."
The association’s next step is to enhance the capabilities of Same Day ACH by "extending access later in the day, providing faster funds availability, and raising the dollar limit for Same Day ACH transactions," Larimer said.
NACHA predicts that nearly 1.4 billion same-day ACH payments will be generated annually within the next ten years.
Other highlights of the the first quarter report include:
- 2.4 billion credit ACH transactions
- 3.3 billion debit ACH transactions
- 1.7 billion direct deposit ACH transactions
- 848 million B2B ACH transactions
- 1.4 billion internet ACH transactions
- 28.7 million person-to-person ACH transactions
Learn More about Cachet ACH Processing for Payroll
Learn more about how Cachet ACH processing, including same-day ACH options, can benefit your business. At Cachet Financial Services, we’re focused on one thing: providing ACH payroll processing services to the payroll industry. We process $150 billion annually in ACH transactions for more than 110,000 employers nationwide. Our clients have access to a full range of employee compensation services through our network of sister companies: Payroll Tax Management, Time Rack, and SBS Payroll. Contact us to set up a demo or to learn more about our new FlexACH platform.