The Automated Clearinghouse (ACH) Network—considered the center of commerce in the United States—facilitated 25.6 billion transactions in 2016 amounting to $43.7 trillion transferred over the network, according to NACHA, the Electronic Payments Association.
In a first, the ACH Network experienced four consecutive quarters of more than 5 billion electronic payments made during each quarter of 2016, an increase of 5.3 percent over 2015 volume, according to statistics released April 12 by NACHA.
Additionally, $43.7 trillion was transferred in 2016 over the ACH Network, which annually moves billions of payments from one bank account to another through direct deposits and direct payments, an increase of 5.1 percent compared to 2015, NACHA reported.
“2016 marked a significant year for the continued evolution and growth of the ACH Network,” Janet O. Estep, president and CEO of NACHA, said in a statement.
As the ACH Network administrator, the nonprofit NACHA is responsible for managing the rulemaking process and establishing rules governing the network, network enforcement and risk management, and network development and innovation. The Herndon, Virginia-based group also acts as an industry trade association that provides various services to members.
Estep largely attributed the success to the implementation of Same Day ACH Payments, launched last September to add to the network’s robust capabilities.
She said that the added attribute of speed has provided additional flexibility and options to a system that has the capacity to process credit and debit transactions, payments and robust information together, domestic and international transactions, and business and consumer payments, among others.
“It is this versatility that makes ACH payments a valued payment type and supports the continued growth of the ACH Network,” Estep said.
Since its launch, Same Day ACH Payments accounted for more than 13 million credit transactions totaling almost $17 billion, according to NACHA stats. The report also show the same-day ACH volume breakdown was made up of 52 percent same-day direct deposits, 32 percent business-to-business (B2B) transactions, 13.5 percent person-to-person (P2P) payments; and two percent consumer bill payments.
“When Same Day ACH debits become available in September of this year, we expect to see this trend continue and anticipate even stronger and more variety in the use of Same Day ACH,” Estep said.
Overall ACH Network volume is now made up of 58 percent debit transactions, 30 percent direct deposits, 23 percent online credits and debits combined, and 15 percent B2B payments, NACHA reported.