Executive Summary

Numerous studies have shown that the widespread use of electronic payments would save the U.S. economy tens of billions of dollars a year. The Federal Reserve, in its landmark 2001 study on the U.S. payment system, concluded that electronic payments now play a far more important role in the payments system than previously believed.

Over one hundred million consumers and millions of businesses use electronic means to move funds on a regular basis, and these numbers are expected to grow as electronic payments continue to experience annual double-digit growth rates.

One of the reasons that electronic payments have such an important role in the U.S. economy is the widespread use of the ACH Network:

• The ACH Network is one of the largest electronic payments networks in the U.S., processing over 7.99 billion payments in 2001. For the last ten years, the annual growth rate of the Network has averaged 15 percent, and indications are that for thenext five years growth rates will continue at 15 percent or higher, reaching 15 billion payments processed by 2006.
• The ACH Network is utilized by over 115 million consumers, four million businesses and is universal in its acceptance by over 20,000 financial institutions.
• ACH services have had one of the fastest growth rates of all cash management products over the last ten years.
• ACH bank product revenue totaled an estimated $545 million in 2001, which was greater than either retail lockbox or controlled disbursement revenues.
• In 2001, 18 percent of all ACH transactions were business-to-business payments, 78 percent were business-to-consumer or business-to-consumer, and three percent were new ACH products such as electronic check conversion, Internet or telephone-initiated payments, and re-presented checks. Non-recurring ACH payments grew by 175 percent in 2001. (www.nacha.org)

• No software to install.
• The ability to accept NACHA formatted files, as well as, non-NACHA formatted files.
• The ability to accept all standard entry class codes.
• Access to warehoused account information.
• On-line ACH capabilities (no more need for paper checks).
• Very competitive pricing Unparalleled 24/7/365 service and support.
• Comprehensive risk management Batch processing for multiple transactions.
• Customizable parameter-based risk modeling.
• Various account activity reports.
• Intricate chargeback controls.
• Negative database to minimize abuse.
• Secure environment through SSL encryption.

More Information For additional information, download the iACH Product Sheet.