The nation's financial institutions originated more then 2 billion automated clearing house (ACH) payments in the 3rd quarter of 2004, the first time that milestone has been achieved, according to statistics from NACHA - The Electronic Payments Association.
Financial institutions' originated ACH volume for the quarter was 2.086 billion, up a sizzling 24.6% over a year ago. Including Federal government payments, ACH volume was over 2.3 billion for the 3rd quarter. Leading the way is ARC - Accounts Receivable check conversion. In the 3rd quarter there were more than 266 million ARC payments, an increase of over 500 percent over a year ago. ARC accounted for 54 percent of the growth in financial institutions' ACH payments.
Federal Reserve Publishes Consumer Brochures on Electronic Check Processing
The Federal Reserve Board announced the publication of two new consumer guides that provide practical information on the changes resulting from technological advances in check processing.
The "Consumer Guide to Check 21 and Substitute Checks" describes how consumers may be affected by the new law and provides information on how to resolve problems associated with the receipt of substitute checks. A second consumer guide, "What You Should Know about Your Checks," discusses more broadly how check payments have changed, including the increased use of electronic check conversion, a process separate from Check 21. In the check conversion process, a consumer authorizes the use of information from their paper check to make an electronic payment at the point of sale or when paying a bill by mail. Both brochures stress that because payments might be processed faster, when a check is written, the money may be deducted from a consumer's checking account sooner. As a result, consumers should be sure they have enough money in their account to cover the amount of their check.