The national ACH (Automated Clearing House) moved 7.5 billion payments for electronic fund transfers. It totaled $19.6 trillion in the 2nd quarter of 2022. It is led by an increase in B2B payments and same-day ACH.
The 2nd quarter marked the 1st time that the same-day ACH dollar limit got increased to $1 million every payment, from $100,000. The change went into effect on 18th March. The changes of ACH Network are implemented and made in collaboration with The Clearing House and the Federal Reserve.
The CEO and president of Nacha, Jane Larimer, said that the community of payments has asked for the $1 million limit. So the financial institutions and the ACH Operators joined with Nacha to make things a reality. The advantages of Same-Day to the users of ACH Network are shown by the results.
It is said that the University of Kentucky switched to Same Day ACH from checks for solving payroll problems during the pandemic. It is one of the popular use cases of Same Day ACH.
The administration, governance, and development of the ACH network are managed by Nacha. It is an electronic system facilitating the money movement in the US.
More than 185 million Same Day ACH payments were there. It transferred $486 billion in 2nd-quarter. There was a respective increase of 24% and 94.4% in the same timeframe in 2021.
The volume of B2B rose in the 2nd quarter by about 12.3%, with 1.5 billion payments. This upward trend started before the escalation and pandemic during the 2 years of lockdowns worldwide.
This particular growth reflects the addition of 250 million payments, even in assistance payments associated with the pandemic. In addition, the dependability, stability, and strength of the new-generation ACH Network are showcased.
Things are changing. Consumer demands are also evolving with it. So, the ACH Network needs to level up its processes to align with the customer needs. Besides, the team is working on coming up with innovations to make things more convenient for the users in the long run.