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LOS ANGELES -- Automated clearing house (ACH) payments totaled more than 6.2 billion in 1999, a 16.9 percent increase over 1998, according to statistics released by NACHA - The Electronic Payments Association at its PAYMENTS 2000 conference.

"In 1999 the ACH Network continued the robust growth that has occurred every year during the 1990s," said Kevin O'Brien, chairman of NACHA
and executive vice president of Chase Bank of Texas. "The annual volume of ACH payments is now four times greater than when the decade began."

ACH payments for 1999 totaled 6.247 billion, up 16.9 percent from the 5.344 billion payments reported for 1998. The dollar amount of the transactions grew from $18.1 trillion in 1998 to $19.4 trillion in 1999, a 7.4 percent increase.

ACH payments include business-to-business payments; direct deposit of payroll, Social Security benefits and tax refunds; direct payments of mortgages, car loans, insurance, utility and other bills; and federal tax payments.

Among the more interesting statistics:

• "On-us" payments -- those between account holders within a single financial institution -- increased dramatically, from 1.057 billion in 1998 to 1.558 billion in 1999, a 47.4 percent increase. This increase reflects changes within the banking industry, including acquisitions and consolidation among national and regional institutions.

• Direct deposits in 1999 increased by 15.8 percent over 1998, from 2.6 billion to 3.1 billion. Direct deposit is used for payroll, expense and travel reimbursement, pension and annuity payments, retirement and mutual fund distributions, Social Security and Veterans benefits and tax refunds.

• Bill payments and other consumer debit payments made over the ACH Network in 1999 totaled 1.9 billion, a 19.4 percent increase over 1998. A bill payment using the ACH Network is known as a Direct Payment, and is typically used for bills such as mortgages, loans, utilities and even credit cards. Other types of consumer debits include charitable contributions and mutual fund or stock investments.

• Use of the ACH Network for business payments, which include business-to-business payments and cash management transfers, increased from 932 million transactions in 1998 to 1.1 billion in 1999, a 16 percent increase.

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