Same-Day, P2P, &Back-Office Conversions: What Is ACH Debit?
NACHA reports that automated clearing house payments were most used in Q4 of 2018. They accounted for more than 5.97 billion transactions, which had been unprecedented in 11 years of online ACH payment and P2P volumes. What is ACH debit? Where can you obtain it easily? Just move forward to find answers below!
Same-Day & P2P Volumes: ACH Payments
Modern fintech companies bring about growing competition in the industry, and same-day transactions are quite helpful in fighting this type of competition. According to NACHA, same-day ACH transactions, credits/debits combined, increased 46% YoY and reached 51.3 million from 35.2 million in 2017’s Q4.
Popular P2P services, including PayPal’s Venmo, and the bank-backed Zelle account for ACH credits. This type of transactions made up 37.9 million in Q4, which was a 46.9% increase from 25.8 million in the previous year.
Some ACH payment codes associated with paper check conversion dropped for a longer period of time. BOC, which is the code for checks that can be written in stores and converted in back offices, grew 11% and reached 28.2 million. That number was 25.4 million at the end of 2017.
ACH Payments: What Is ACH Debit?
Modern consumers are looking for faster and ubiquitous access to info and services that’re available in today’s digital world. When it comes to electronic payments transferred from one bank account to another, it can take more than one day to complete them even within the same country.
Thankfully, online ACH payments offer both speed, ease use, and reliability. Besides, they’re also quite useful especially for eCommerce needs, and not only. Consumers opt for ACH payment services for making their everyday payments more often than in the past, as ACH network administration’s vice president Michael Herd notes.
You might have heard the term ACH debit, haven’t you? So, what is ACH debit? To know what ACH debit is, just turn to a reputable payment processor. Before turning, be aware that it’s the Automated Clearing House (ACH) network that’s responsible for ACH debit/credit transactions.
The network is called to connect over 25.000 banks, and other institutions in the financial sector. It makes payments get electronically collected across the country. ACH debit is also called a “direct payment, “and is often used for recurring bill payments, including insurance or utility bills.
The evolution of the payments industry continues to result in striking changes and developments. One of the greatest innovations is associated with blockchain technology. The latter is transforming traditional financial systems with more and more enthusiasm.
Today, cross-border money remittance space is in a crossroad that’s full of challenges. The traditional SWIFT system is now faced with the competition brought about by newly emerged systems like Ripple. The latter operates based on the blockchain-driven ledger technology with crypto tokens of its own.
According to, Jane Larimer, chief operating officer at NACHA, the ACH network has never been as strong before as it’s today. The robust growth is quite vivid across many ACH transaction types. What’s more, the same-day ACH payments statistics reveal that these payments are being embraced by not only consumers, but also by businesses, and financial institutions.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that can best help those looking for answers to “What is ACH debit?” He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.