ACH payments have steadily gained ground as businesses seek faster, more efficient alternatives to paper-based processes. While checks have long dominated business payments, ongoing improvements to the ACH network, including the introduction of same day ACH, have made electronic payments increasingly attractive for organizations looking to improve cash flow, reduce costs, and streamline receivables management.
The transition, however, has been slower than many expected. Despite growing adoption, businesses continue to face practical barriers ranging from customer preferences to technology limitations. As electronic payment capabilities expand, understanding what is driving adoption—and what is holding it back—remains critical for organizations evaluating their payment strategies.
ACA International, an association representing credit and debt collection professionals posted a news article regarding the launch of same day ACH, but also reminded readers how much check writing still occurs in the U.S.:
Results from a survey by Credit Research Foundation in partnership with NACHA released in June show the use of checks is declining while electronic payments are on the rise.
“Credit and account receivables professionals anticipate that ACH transactions will surpass checks as the leading form of payment received from business customers by 2020,” according to a news release on the survey. “Currently, checks account for almost 50 percent of payments (down from 63 percent in 2014); ACH 32 percent (up from 22 percent in 2014), cards 11 percent (up from 8 percent in 2014), and cash and wire 8 percent (up from 7 percent in 2014). By 2020, respondents anticipate that ACH will account for 45 percent of payments, checks 34 percent, cards 12.5 percent, and cash and wire 8.5 percent.”
So why would are businesses still conducting 50% of their payments through checks and not through electronic means like ACH? We often forget that not all businesses are risk qualified for initiating ACH or find these services cost prohibitive:
Barriers include having customers that are not capable of sending ACH payments, according to 45 percent of respondents. “Another 34 percent say that their customers can send ACH payments, but do not properly send remittance with the payment. And another 21 percent suggest that their organizations do not have the proper systems and/or resources to effectively use ACH,” NACHA reports
The continued growth of ACH payments highlights the broader shift away from paper checks and toward digital payment methods. As same day ACH capabilities mature and more businesses modernize their payment operations, electronic payments are likely to capture an even larger share of transaction volume.
However, adoption is not solely a technology issue. Customer readiness, remittance data challenges, and resource constraints continue to influence payment preferences across industries. Organizations that address these operational hurdles while embracing ACH capabilities will be better positioned to improve efficiency, strengthen cash flow management, and support future payment modernization efforts.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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