The ACH Network (which stands for Automated Clearing House) is a type of electronic funds transfer system that allows funds to be electronically transferred from one US bank account to another.
The ACH Network itself is a nationwide, batch-orientated system that has been around for over 40 years, operated by the Federal Reserve, and governed by the operating rules of the National Automated Clearing House Association (NACHA).
To learn more about the utilization of ACH payments and the growth of the ACH network, please see the statistics below:
- From 2013 to 2014, the total volume of ACH Network transactions increased by 5% for a total of 23 billion transactions, and the total dollar value grew by 3% for a total of over $40 trillion.
- Its use continued to grow from 2014 to 2015, with the number of ACH transfers increasing by 5.6% for a total of over 24 billion transactions, with an estimated value of $41.6 trillion in 2015.
- Q1 of 2016 as compared to Q1 of 2015, showed ACH transfers had already increased by 6.1% (or 5 billion transactions) with a value increase of 4.5% (or $10.6 trillion).
- B2B transactions via ACH increased by 7.3% in 2014
- Recurring payments grew by 4.4% in 2014 and now account for almost 50% of all ACH network transactions.
- Approximately 83% of merchants and businesses in the US utilize the ACH Network for at least one facet of their payments.
- In 2015, over 5.8 billion direct deposit transactions were received by consumers for payroll, tax refunds, and more.
ACH Processing Costs:
- The Federal Reserve operates “at-cost,” which means it only collects what it costs to run the system.
- According to the Federal Reserve System, the cost of operating the ACH system in 2015 was $129.9 million, and the Federal Reserve’s revenue was $129.8 million.
Find out more about Transact24’s ACH payment processing solution
If you want to find out more about Transact24’s ACH payment processing solution, and how your business can start enjoying the many ACH processing benefits, please visit our ACH facts page, or directly get in contact with us for more information.
You can do so by email or via the form provided on the contact us section of our website. Once we receive your request for more information one of our ACH sales representatives will be in contact with you within 24-48 hours.
Getting started with ACH Processing from Transact24 is simple. Just drop us a line using our contact form and we’ll be in touch to get the ball rolling