Check 21 Spurs Growth In Electronic CheckTransactions
WASHINGTON - (04/19/05) -- Electronic check conversions bybanks and credit unions grew six-fold in 2004, mostly because ofthe new Check 21 Act and increased use of electronic paymentsystems. A new study by NACHA--The Electronic Payments Associationshows automated clearinghouse payments grew 20% last year to morethan 12 billion, which was largely driven by a six-fold increase ofaccounts receivable check conversion (electronic conversion) tomore than 1.25 billion. Annual ARC volume grew by more than onebillion payments and accounted for 54% of all ACH transactiongrowth in 2004, according to NACHA. Internet-initiated ACH paymentsrepresented the second biggest growth area, with 967 million ACHdebit payments, valued at more than $300 billion, made over theInternet, last year. That's up 40% from 2003. NACHA estimated that80% of Internet-based transactions were to pay bills; 18% were totransfer funds; and 1% were to make purchases.