The ACH (Automated Clearing House) Network affects most Americans daily, having moved nearly $73 trillion in payments in 2021, according to Nacha, the organization that governs it. 

As payments constantly evolve and become more digital and faster, the ACH Network is also evolving in order to meet the needs of both businesses and consumers. To learn more about how it is handling the new world of payments and what might be in store for the future, PaymentsJournal sat with Michael Herd, Senior Vice President of ACH Network Administration at Nacha, and Steve Murphy, Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service, for a discussion on this vital payments network that Americans use every day.

PaymentsJournalHow the ACH Network Is Evolving to Meet the Needs of Businesses and ConsumersPaymentsJournal How the ACH Network Is Evolving to Meet the Needs of Businesses and ConsumersPaymentsJournaljQuery(document).ready(function ($){var settings_ap28445071 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"28445071",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_387228_28",settings_ap28445071); }catch(err){ console.warn("cannot init player", err); } });

Payments volume, especially B2B payments, continues to grow significantly on the ACH Network in 2022, noted Herd. The number of transactions on the ACH Network increased 2.8% so far this year, with B2B payments increasing 14% so far in 2022 B2B payments are defined as invoice and supplier payments from one business to another or merchants and businesses getting funded for card activity. It does not include payroll direct deposits, which are a separate category.

“So, the increase in volume of B2B payments has been really dramatic,” he said. “We’re also seeing very, very high levels of dollars moving through Same Day ACH windows. And consumer payments continue to be strong as well despite the end of the pandemic-era assistance payments.”

ACH Limit Increase to $1 Million

Murphy asked about the impact of the ACH Network’s move in March to increase the Same Day ACH payment limit to $1 million. Nacha members approved a measure to increase the per-payment maximum from the previous limit of $100,000 to $1 million effective March 18, 2022. It applies to all eligible Same Day ACH payments, including credits and debits for both businesses and consumers.

The $1 million limit can be used for many different types of payments, from insurance claim payments and payroll funding to business-to-business and tax payments, according to Nacha.

The second quarter was the first full quarter with this per-pa...