Surge In Commercial Payments Pushes ACH Payments Volume Up 9 Pct In 3Q

The ACH Network, the national clearinghouse for electronic funds transfers, saw a big jump in activity in the third quarter, even as government assistance payments trailed off.

There were 6.8 billion payments on the ACH Network during the third quarter, a 9 percent jump over the same period in 2019, according to Nacha, the governing body for the network, which connects financial institutions (FIs) across the country.

Federal assistance payments to the unemployed have dropped significantly as money from last spring’s $2 trillion coronavirus relief package has dwindled.

However, the ACH Network saw a significant jump in electronic funds transfers on the commercial side of the ledger. B2B payments rose 12.4 percent, while healthcare claim payments to providers also rebounded as doctors’ and dentists’ offices reopened in the third quarter, according to Nacha. In particular, there were 94.5 million healthcare claim payments in the quarter, an increase of 8.1 percent from a year ago and a jump of 18.8 percent over the second quarter.

“The modern ACH Network serves the American people and businesses by delivering stimulus payments on time, and by enabling safe, remote electronic payments,” said Jane Larimer, Nacha president and CEO, in a press release.

The numbers also reflect ongoing, longer-term shifts in how consumers are making payments, with a continued move away from paper transactions, according to Nacha.

Direct deposits shot up nearly 16 percent over the second quarter, hitting two billion payments, while person-to-person electronic funds transfers surged 52 percent.

Payments and transfers of money that were initiated through online platforms rose 14 percent.

Overall, check conversion payments, in which a paper check is processed electronically as an ACH payment, declined by 24 percent, according to Nacha.

“Electronic ACH payments are the proven way to make payments for wages and salaries, expenses, benefits, B2B and so much more,” said Larimer.