LSEG Editor
As Nacha reports surging growth in ACH payments and Same Day ACH payments over the course of 2024, how can payments firms and other business entities tap into the benefits of this growth, while protecting against evolving fraud threats?
- Nacha has reported surging ACH payment volumes over the course of 2024, with particularly strong growth in the volume of Same Day ACH payments, which rose 45.3% year-on-year.
- Faster payments deliver speed and efficiency – but offer financial criminals new opportunities to commit fraud.
- Proactive fraud prevention throughout the customer lifecycle allows firms to take advantage of one of the most prevalent payment methods in the industry, while still ensuring safety and compliance.
A record year
The ACH Network – the US banking network that allows for the electronic transfer of funds (debits and credits) using ACH rails for payment processing – recorded a record year in 2024. The network is managed by Nacha (The National Automated Clearing House Association).
Nacha reports rising payment volumes over the course of 2024, revealing that ACH Network payment volumes rose 6.7% from 2023 to 2024 to reach 33.6 billion payments with a value of US$86.2 trillion.
Of particular interest is the surging volume of Same Day ACH payments, which reached over 1.2 billion payments for the year – with a value of US$3.2 trillion, a year-on-year volume increase of 45.3%. More than this, the trend is exponential, with this increase showing more than double the growth rate recorded between 2022 and 2023.
In addition, B2B payments rose substantially, showing an 11.6% increase over the year and underscoring the increasing popularity of the network and its reputation for ensuring “safe, smart payments.”[1]
In 2024, Same Day ACH moved an average of 4.94 million payments a day with a daily total average value of US$12.7 billion.
Same Day ACH Passes Major Milestone in 2024 as the ACH Network Shows Higher Growth | Nacha
Good news for the faster payments space
These surging volumes – especially the exponential growth in same day payments – are good news for all players in the faster payments space. Quicker payments have revolutionised the industry, offering enhanced efficiency and seamless transactions, while keeping the pace of digital transformation swift.
These latest figures also support our February insight prediction that real-time payment systems will become increasingly popular as financial institutions look to adopt measures to facilitate instantaneous transfers, advance the pace of business and align with evolving customer expectations for seamless, efficient transactions.
There is one caveat, however: while the many benefits of faster payments are becoming increasingly evident, it is essential to remember that payments-related risk is growing, with both the number and type of fraud attempts continuing to rise:
- Global losses from financial scams and bank fraud schemes reached US$485.6 billion in 2023, with identity theft as the most frequently reported complaint.[2]
- Synthetic identity fraud is projected to generate at least US$23 billion in losses in the U.S. alone by 2030[3].
In light of these figures, organisations need to ensure enhanced security to safeguard their customers – and their reputations. Effectively mitigating fraud in this shifting landscape requires a comprehensive approach that spans the customer lifecycle, from onboarding and throughout the relationship, including ongoing monitoring of all interactions.
Tap into speed, efficiency and enhanced security
While ACH volumes continue to rise, the network does not offer real-time verification or authentication. The right tools, however, can fill this gap by enabling automated decision making and fraud prevention, allowing organisations to take advantage of one of the most prevalent payment methods in the industry, while still ensuring safety and compliance.
As financial criminals become ever-more sophisticated and adept at leveraging the latest technology to commit new forms of crime, organisations must adopt a multi-faceted approach to protecting themselves. Reducing risk is not a single event but rather requires ongoing screening so that firms know exactly who they are engaging with at all times.
Mitigating fraud across the customer lifecycle is key to protecting businesses over the long term. For example, it is necessary to verify that ACH transfers are being made to legitimate accounts, to verify identity, vet email addresses, implement multifactor authentication, and more.
Good risk management starts with ensuring that you are onboarding “good actors”. Moreover, continuous screening ensures that any change events originate from a true identity. This expanded focus provides a more holistic approach to your lifecycle management.
Audrey Touma
The right combination of comprehensive risk management data and tools can help organisations manage customer and business identity verification, payments and compliance risk across the customer lifecycle.
As we look ahead to 2025, we expect the trend of ever-increasing volumes of faster payments to continue – and we remain committed to accelerating their adoption by delivering advanced risk protection and equipping firms to safely tap into the speed and efficiency that global business demands.
1. Same Day ACH Passes Major Milestone in 2024 as the ACH Network Shows Higher Growth | Nacha
2. Nasdaq 2024 Global Financial Crime Report
3. 2023 FSI Predictions Report, Deloitte Center for Financial Services
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