ACH Internet Bill Payments May Displace Traditional Checks In 2010

According to Digital Transactions, Internet based e-check traffic is approaching the transaction volume of traditional paper-based bill payments. If the current rate continues web-based check payments could surpass paper checks in 2010. Internet bill payments amounted to 94% of the paper based alternative during the second quarter. This compares to 62% in 2005, 64% in 2006, 65% in 2007 and 78% in 2008, according to NACHA’s findings. Additionally, back office conversion, which allows retailers or their processors to convert checks to ACH transactions in their back offices, posted a 288% gain from 2008’s second quarter.