are more amenable to shifting their payment methods away from checks to electronic alternatives,” the report noted. Even with the pandemic, volume grew in 2020, with 6.6 billion total ACH payments in the second quarter, a 7.9% increase from the same quarter in 2019.Īccording to an AFP study, “this year’s survey results… suggest companies in the U.S. Of these, around 4 billion were B2B, representing a 12% growth. The network would go on to move 24.7 billion payments valued at close to $56 trillion in all in 2019, PaymentsJournal noted in November. “The first quarter results show that the ACH Network is poised for another year of sustained growth,” Jane Larimer, Chief Operating Officer for the National Automated Clearing House Association, or NACHA, which governs the network, said in a press release, not long after the network broke 100 million daily payments for the first time. ![]() Over 100 million times a day, and the number’s still growing, people or businesses make use of the ACH Network. The ACH also works well for B2B payments, since its standard fees of $0.20 to $1.50 per transaction are a fraction of the average 1.3% to 3.4% credit card processing fees. More than 90% of workers receive their paychecks via the ACH, since it’s generally how direct deposit travels. People and businesses often make frequent use of the ACH likely because it’s secure, affordable, and relatively quick, at least quicker than waiting on a mailed check. Even just looking at businesses, there were just shy of 11 million B2B payments with the ACH each day in 2019. The ACH is not technically a brick-and-mortar place, though it processes around as many total payments in a day as the number of passengers for all of 2019 at the world’s busiest airport (110.5 million at Hartsfield-Jackson in Atlanta for anyone curious). a few years later, ACH payments are a form of electronic funds transfer (EFT), using a virtual waystation known as the automated clearing house to allow funds to move from one account to another. 1: ACHįirst created in the 1960s in the United Kingdom and brought to the U.S. Join us as we explore what ACH payments and paper checks are in B2B terms, how they’re used optimally in this environment, and how the two payment types compare head-to-head. That said, there will still be times where businesses might need to opt for paper checks over using ACH payments. Numbers for 2020 aren’t available yet, though it’s conceivable that the COVID-19 pandemic, which spurred a sharp rise in remote working, has led to even fewer paper checks and more electronic payments through methods like the automated clearing house, or ACH. ![]() It’s no secret that, in recent years, paper checks have been steadily declining in popularity in the B2B payments space.Īn Association for Financial Professionals study found in September 2019 that, for the first time, fewer than half of all B2B payments were made by check.
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