ACH volume grew to almost 23 billion electronic payments last year, an increase of almost 5%, or 1 billion transactions, over 2013 volume, according to new statistics released by NACHA ” The Electronic Payments Association. RAM Research projects it will grow to 24.5 billion by EOY 2017.
A total of more than $40 trillion was transferred over the ACH Network last year, increasing more than 3 percent compared to 2013.
Reflecting the industry’s continued adoption and use of electronic payments, native electronic payments, or transactions that start and end as electronic, constituted 90 percent of ACH Network volume. In 2014, there were more than 16 billion native electronic payments, up 6.3 percent from 2013.
Specific categories of native electronic payments that saw significant growth in 2014 include online payments (WEB transactions), business-to-business (B2B) payments (CTX and CCD transactions), and recurring payments (PPD transactions), such as Direct Deposit via ACH.
WEB transactions ” debit or credit payments made when authorization is provided via the Internet or a wireless network ” grew 10.2 percent in 2014. A total of 3.6 billion WEB transactions were exchanged via the Network last year, including 7.4 million WEB credits that were person-to-person (P2P) payments. The implementation of new rules in March 2014 enabled the use of the WEB credit to identify and standardize P2P payments processed via the ACH Network. In total, WEB transactions accounted for almost 20 percent of ACH Network volume.
In 2014, the ACH Network processed a total of 2.7 billion CTX and CCD transactions, including 149 million healthcare payments via ACH, which are CCD transactions. This was an increase of 7.3 percent over 2013. Addenda record use associated with B2B payments grew as well, with CTX and CCD addenda use collectively increasing 7.7 percent.
Recurring payments, or PPD transactions, which account for almost half of total ACH Network volume, grew by 4.4 percent in 2014. Direct Deposit via ACH, or PPD credits, increased 3.6 percent over 2013.
To help maintain ACH Network quality, NACHA employs a comprehensive risk management strategy, which enables new opportunities and applications to thrive, while ensuring the safety, security and integrity of ACH payments. NACHA also utilizes the National System of Fines, which provides the means for evaluating possible Rules violations. Through a formal system of warnings and fines, it corrects infractions and helps ACH Network participants remain within the Rules’ boundaries. In 2014, NACHA assessed fines in 148 cases in the amount of $369,000. Through the National System of Fines and other risk management initiatives, including Rules development and implementation, the overall Network unauthorized debit return rate was a very low 0.028 percent in 2014 (i.e., less than 3 out of every 10,000 transactions).
For data, background and forecasts on NACHA: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).