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

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.