Wednesday, May 19, 2010

NACHA stats reveal electronic migration

Posted by Mark Brousseau

If you’re looking for more proof that consumers continue to move away from paper-based check payments and towards more convenient and “greener” electronic transactions, look no further than NACHA’s 2009 statistics for the Automatic Clearing House (ACH) Network, says Leilani Doyle (, product manager at US Dataworks, Inc., a leading provider of enterprise payments solutions.

Doyle notes that while overall ACH payment volume increased by more than 475 million transactions in 2009 – a 2.6 percent increase compared to 2008 – Accounts Receivable Check (ARC) Conversion volume decreased by about 10 percent, according to NACHA’s statistics. The drop in ARC volume was offset by a spike in Internet-initiated (WEB) transactions of 9.7 percent in 2009, Doyle points out. Similarly, US Dataworks, the long-time market share leader in ARC volumes, saw its WEB volumes soar 700 percent in 2009 compared to the previous year, Doyle said.

“This trend is not surprising,” Doyle says. “It reflects the shift in consumer preferences from writing checks to making payments over the Internet.”

Doyle adds that she also wasn’t surprised by the uptick in Back Office Conversion (BOC) volumes indicated by NACHA’s annual statistics. “BOC will continue to grow as businesses that still take checks over the counter look for ways to reduce their costs to process checks,” Doyle explains.

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