Menu
Banking Exchange Magazine Logo
Menu

Same-day ACH one month in

Even consumers get into the stream

  • |
  • Written by  Website Staff
  • |
  • Comments:   DISQUS_COMMENTS
Steady debut for faster ACH payments, according to NACHA's report. Steady debut for faster ACH payments, according to NACHA's report.

Many businesses and consumers want to see faster payments, but even the newest wrinkles in moving money from pocket A to pocket B takes some time to build volume. Same-day ACH appears to have had a decent start, according to figures released by NACHA-The Electronic Payments Association, which runs the ACH network.

Same-day ACH began the first phase of its implementation on Sept. 23 of this year. NACHA reported that 3.8 million same-day transactions took place in calendar October. The total value of those transactions came to $4.98 billion, with the average transaction amount coming to $1,303.

To put the 3.8 million in perspective, Michael Here, senior managing director at NACHA for ACH Network rules, said that 5 billion payments were made in the third quarter via ACH. “We’re just out of the gate with same-day volume,” said Here, though NACHA is pleased with the early results.

While demand for faster payments has been growing, “we were not really sure what to expect,” said Here. At this point Here could not project what the remainder of the year would look like. Later this year NACHA plans to conduct some industry surveys to see what institutions expect.

Digging into the volumes reported more specifically:

• The largest number of same-day payments comprised Direct Deposit via ACH transactions. NACHA said this included such uses as emergency payroll and pension payments. Overall, this type of payment represented 49% of same-day ACH volume. In this category there were 1.9 million transactions totaling $1.6 billion.

• Business-to-business payments accounted for 36% of same-day ACH usage in October. There were 1.4 million transactions totaling $2.8 billion.

• Individuals also used same-day ACH services offered through their financial institutions. There were 506,000 same-day person-to-person payments and 61,000 consumer bill payments. Overall these transfers were for small-dollar amounts, not major payments.

Michael Here said that spurt of consumer usage was a bit of a pleasant surprise. “That’s a great start,” he said. Here said more banks are expected to begin offering same-day personal transfer services for consumers, competing with such offerings as PayPal’s Venmo P2P service.

back to top

Sections

About Us

Connect With Us

Resources

Webinar: From KYC to IDV

How three leading banks are utilizing cutting-edge
digital tools to onboard, win, and wow customers

Time/Date: June 23, 2021 11:00 a.m. ET

Digital adoption, already moving at warp speed, accelerated seven years into the future during the COVID-19 pandemic. As the number of bank branches continues to fall, with at least one study predicting all branches will disappear by 2034 (Fox Business) and foot traffic declining (Vox), today’s most innovative banks are charting a new, digital-first path to win over customers while increasing security, meeting KYC compliance requirements, and winning customers to drive revenue.

In this webinar, you’ll hear from John Baird, Founder & CEO of Vouched, Tyler Crawford, COO of Bankers Healthcare Group, Anand Sathiyamurthy, CPO of Flagstar Bank and Daniel Sheehan, Chairman & CEO of Professional Bank as they describe their vision for digital transformation and how customer expectations are changing to digital first. They’ll also explore how fostering an innovation mindset creates new ways to tackle complex KYC problems and allows them to quickly compete in new markets and win customers.

REGISTER NOW!

This webinar is brought to you by:
Vouched Logo