Important For Payday Loan Merchants – ACH Transaction Growth In 2015’s Fourth Quarter

Mar 23, 2016

ACH governing body NACHA (previously the National Automated Clearing House Association) has recently reported the total amount of transactions was 4.98 billion in 2015’s 4th quarter. This is up 5.5% from 4.72 billion registered in 2014’s fourth quarter. 2015’s third quarter had 5.9% increase.

Fast-growing Transaction Codes

Transaction categories related to one-time and recurring consumer payments are playing a major role in the field. Below you can find a list of fast-growing transaction codes:

  • PPD Credits, used for direct deposits of payroll, Social Security and other payments, increased 1%. Considered as the ACH’s biggest payment category, they reached 1.46 billion transactions.
  • WEB Debits, NACHA’s second-largest code by volume, are a type of e-check codes used for online transactions. They grew 13.8% and counted for 1.09 billion transactions.
  • Prearranged Payment and Deposit (PPD) Debit Transactions are used for recurring payments to health clubs, homeowners’ associations, charities and other billers. They grew 5% and reached 916.3 million transactions.
  • TEL, used for telephone-based ACH payments, provided 119.6 million transactions. This is up 12% from 2014’s volume.
  • IAT (International ACH Transactions) is another fast-growing transaction code. IAT increased 18.9%, reaching 20.5 million transactions.
  • WEB Credit Code is used for person-to-person payments. It had an annual 225-percent increase and resulted in 17.1 million transactions.

Codes in Decline

E-check codes used for transactions originating with paper checks were in decline. The reason is that consumers prefer online or mobile channels for making bill payments and point-of-sale or POS purchases.

Taking all this into account, it is so much important to apply to a reliable payment processor in the field. If you’re a payday loan merchant, consider turning to, the nation’s top-rated high risk processor.

EMB offers an Automated Clearing House (ACH) for high risk credit card holders and Check Clearing for the 21st Century (Check 21) for check writers. This is your ideal choice as EMB specializes in providing ACH for payday loan merchants.

Here is a list of codes in decline:

  • ARC (Accounts Receivable Conversion) Code, used for completing lock-box conversions of checks for bill payments, fell 5.7% and counted for 361 million transactions.
  • POP Code, used for ACH transactions at the point of purchase, declined 13.2% and resulted in 78.4 million.
  • BOC Code, used for back-office conversion of checks, dropped 10.7%. It provided 37.4 million transactions.


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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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