Consumers Embrace Same-Day ACH Transactions, Doubling to $51 Trillion

Apr 12, 2019

Same-day ACH transactions climbed to $51 trillion last year, proving that everyone is embracing instant payments.

NACHA, the electronic payments association, recently announced that 2018 was a milestone year for the ACH Network. Payment volume rose by almost 1.5 billion, making it the fourth consecutive year to add one billion new payments to the network.

In 2018, ACH Network volume reached nearly 23 billion payments in 2018, a year-over-year increase of 6.9% and the highest growth rate since 2008. According to NACHA, that total equals nearly 70 payments for every person in the U.S.

During that same year, the value of ACH payments was $51.2 trillion, which is a 9.5% increase from 2017. It marked the sixth consecutive year in which ACH payment value rose by at least $1 trillion.

Same-Day ACH Transactions Proving to Be a Game-Changer

Same-day ACH volume soared in 2018, which is the first full year with same-day debits and credits. There were nearly 178 million same-day ACH payments last year. The breakdown was 98.3 million credit and 79.7 million debit transactions.

Overall, same-day ACH volume jumped 137 percent from 2017. Total same-day ACH value in 2018 was $159.9 billion, which was up 83% from 2017.

The results clearly show that the ACH network is a vital part of the economy. As more enhancements to the system are planned for the next few years, NACHA expects the network to continue to thrive. For businesses and consumers, they should expect the overall experience to get even better.

The Major ACH Payment Increases at a Glance

In 2018, several core ACH payment types grew significantly, including:

  • Business-to-business (B2B) payments, rose 9.4% to 3.6 billion, totaling in value to $34.9 trillion
  • Direct deposits increased 4.4% to 6.8 billion, totaling in value to $9.7 trillion
  • Internet payments climbed 14.2% to 5.9 billion, totaling in value to $2.9 trillion
  • Payments from medical and dental providers and health plans rose 11.5% to 306.7 million, totaling in value to $1.59 trillion
  • Person-to-person (P2P) payments, increased 32.2% to 128.7 million, totaling in value to $209.6 billion

Upcoming ACH Network Expansion Rules

NACHA, which manages and governs the ACH Network, continues to expand its capabilities, with the following upcoming rules:

  • The speed of funds availability for certain Same Day ACH and next-day ACH credits goes into effect on Sept. 20, 2019.
  • Starting on Sept. 18, 2020, same-day ACH transactions can be submitted to the ACH Network, which is the foundation for the electronic movement of money and data in the United States, will be extended by two hours each business day.
  • Per-transaction dollar limits will balloon from $25,000 to $100,000, effective March 20, 2020.

In Conclusion

The numbers can’t lie. Expanding same-day ACH processing makes safe, secure, almost real-time payments a reality for financial institutions and customers, and they appear to love taking advantage of them. NACHA has listened to the public’s demand that it wants its money quicker and created a blueprint to satisfy customers’ demands and preferences.

If you are looking for a trusted ACH processor, then consider (EMB). EMB works with businesses of all sizes and credit histories, and it specializes in businesses labeled as “high risk.

It offers a simple online application process, and most applicants get approved quickly. Why not take advantage of giving your customers quicker, safer, and efficient transaction processing? Start your application to begin the process.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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