The ACH network transferred 7.5 billion payments totaling nearly $20 trillion in the second quarter, according to a announcement of Nacha, the industry group responsible for carrying out the protocol.
Measures of year-over-year change included:
- Same-day payout nearly doubled, growing 94.4% to $486 billion on a 24.4% increase in volume. Approximately 3 million same-day ACH payments are made every day.
- Overall payment volume increased by 3.5% and value by 6.5%, driven by growth in same-day and business-to-business (B2B) payments.
- B2B payments grew 12.3% to 1.5 billion payments, or 20% of the total, and value increased 5.6% to $13.3 billion.
The last quarter was the first in which the same-day ACH dollar limit was $1 million per payment, following the increase on March 18, 2022.
See also: Nacha Increases Limit Per Payment for Same-Day ACH to $1 Million
Moving large sums the same day is a boon for B2B.
“ACH end users have consistently and consistently requested higher dollar limits for same-day ACH payments,” said Michael Herd, senior vice president of ACH network administration at Nacha, in a March. blog post following the announcement of the raising of the ceiling.
The limit was just $25,000 until 2020, when it quadrupled to $100,000 en route to the current level of $1 million per payment.
Speed at Scale Matters for B2B
Even without the added boost of the pandemic, ACH has clear advantages over paper checks. While checks can take time to arrive or even get lost in the mail, electronic payments are fast and reliable. They require little to no manpower to enter an archiving system, as banks create an electronic record with every transaction.
B2B use cases are booming as economic pressures make waiting for a check in the mail increasingly untenable. As businesses realize the simplicity and cost savings they can achieve with ACH, usage is likely to continue to grow, especially given the increased speed and size of transactions.
The system now has the speed and capacity businesses need to process large payments efficiently and effectively, with certainty of just-in-time funds availability.
The increase in transaction size has the potential to dramatically increase the usefulness of the network for large enterprises that need to pay for large orders. Thus, ACH will become more useful in addressing the payment side of the supply chain crisis.
Sixty-eight percent of chief financial officers (CFOs) report increased use of ACH in their business due to digitalization since the start of the pandemic, making ACH the #1 payment method in terms of more frequent use, according to the “Real-Time Payments Tracker”, a PYMNTS and The clearing house collaboration.
Winners and losers
Beneficiaries of this increase are suppliers and buyers, who can benefit from the efficiency, effectiveness and clarity of fixed-date same-day payments at high six- and seven-digit scales, as well as banks. who collect transaction fees and a better customer relationship with business-to-business customers.
Potential losers include credit card companies, the US Postal Service and private-sector competitors such as UPS and FedEx, which profit from paper check delivery, and struggling corporate check printers.
Even as cutting-edge innovations such as real-time payments and cryptocurrencies become mainstream, ACH seems to be preparing for a competitive future based on the network improvements it brings.
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