The ACH payment technology powered by Nacha (National Automated Clearing House) underwent several transformations over the last decade. Although this payment method has been around for decades, recent technological advancements took its adoption across several sectors to the next level. Faster transactions and more security made ACH payment solutions the first choice for several business owners and individuals.
This blog talks about the latest adoption statistics for the Automated Clearing House (ACH) technology in the U.S.
Statistics on ACH Payment Technology
#1. In 2021 alone, the Automated Clearing House network took responsibility for processing 29.1 billion transactions worth $72.6 trillion.
#2. Many people implemented same-day ACH transactions. Previously, money transfers over the ACH network took 3-5 business days to process. However, with the recent developments, Nacha began to support same-day ACH transfers. We saw a massive 74% increase in same-day ACH payments with this advancement.
#3. We saw a year-on-year (YoY) growth of 8.7% in ACH payments since 2012. Moreover, the YoY growth for total dollars transacted sits at 17.4%.
#4. Diving deeper into the statistics for different types of transactions, we see that:
- 5.32 billion payments worth $49.79 trillion were B2B transactions.
- 271.24 million payments worth $401.52 billion were P2P transactions.
- 13.84 billion payments worth $8.89 trillion were consumer bill payments and other debits.
- 8.37 billion payments worth $13.03 trillion were direct deposit payments.
#5. The commercial and government organizations used their bank accounts to carry out direct deposit ACH transfers with a YoY growth of 4.3%. Direct deposit is usually used for payroll and social security transactions like tax refunds and retirement distributions.
#6. Consumers used ACH payment solutions at a YoY growing pace of 9.16% for their bill payments. The recurring payment solutions available on the ACH network help consumers automate their payment cycles.
#7. Internet transactions over the network grew at a consistent pace of 13.2% YoY since 2012.
#8. With same-day ACH transfers, consumers are using ACH to carry out P2P transactions too. Since 2014, the YoY growth for ACH-based P2P transactions sits at 24.6%.
#9. As seen in point 4, nearly 70% of the entire transacted dollar amount on the network came directly from B2B transactions. The lower processing fee makes ACH one of the popular payment solutions for consumers and businesses alike.
#10. ACH solutions for healthcare claims also saw a significant growth of 17.9% YoY since 2014. ACH and credit card payments were the backbone of payments in the healthcare industry during the peak of the COVID pandemic.
Source for these statistics: Nacha
Leverage ACH for Your Business
Statistics show that more and more businesses now use ACH to move money efficiently. Additionally, they save valuable time and money by sending money securely over a robust network. So, as a business owner, what are the core benefits of leveraging the ACH technology for your financial operations?
Cash Discount Program
Most people today prefer carrying out cashless transactions. They prefer using debit and credit card payments over cash. More secure transactions, contactless payments, and no need to carry the exact amount of change are a few reasons why people prefer cards over cash. However, this convenience comes at a cost.
Customers who pay via credit cards often need to pay an additional amount over the actual cost of goods/services. This extra amount goes towards the card processing charges. However, customers will avoid paying this extra cost and get an additional “discount” by paying just the price of goods/services without further processing fees when they choose to pay via cash or paper checks.
Herein lies the dilemma: Everyone wants to leverage the latest digital transaction tech for its convenience, but they also want to get a cash discount.
ACH solutions come to the rescue! Customers that pay via online ACH, still getting the cash discount without paying in cash!
Ideally, merchants that accept both ACH and credit cards attract most customers because they offer all payment options unlocked. They cater to the needs of both types of customers. The ones who do not want to pay via cash and still get a discount, and the ones who still prefer paying via cards. Learn more about cash discount programs.
With the recent developments in ACH technology, Nacha increased the overall safety of the network considerably. Now they rate as safe as credit card transactions. Whereas PCI-compliant payment processors help merchants accept payments without storing sensitive customer banking information on their networks, Nacha gives similar regulations to follow when processing payments with ACH solutions.
With this electronic check solution, Merchants collect authorization for ACH transactions using the web, phone, and paper. Maintaining a digital/paper trail for authorization helps both merchants and customers settle any disputes effectively. ACH offers precisely what customers need from a payment technology, i.e., lower processing costs and faster (almost real-time) transactions without compromising on security.
The ACH network also supports recurring payments that effectively help consumers/merchants automate their payment/collections cycles. The proper implementation of ACH with a suitable payment processor will help merchants automate both credit and debit transactions.
Technically advanced payment gateway providers build technologies like SMS payment, Email Invoicing, and IVR Technology on the ACH network. These technologies help merchants automate several aspects of the customer journey, from their onboarding to billing and collections. Leveraging the ACH technology helps merchants add a much-needed additional payment option for their customers.
Partner with us today to start accepting payments over the ACH and credit card network on a single platform! Speak to one of our experts here to know more!
MORE TAGS:Nacha Preferred Partnership, Payment Processing, Financial, Credit Card Technology, ACH Education, Payments Education, ISOs, Cash Discount, Banking, Merchants, Mobile Payment Techology, Consumers, Virtual Terminal, Email Invoicing, Energy, Value Added Reseller