As a payment system that universally connects all U.S. bank accounts, the ACH Network supports a tremendous amount of transactions. Between Same Day ACH and core ACH payments, the transaction volume on the ACH rails has been steadily rising. To learn more about the ACH Network’s growth, and to better understand the difference between faster payments, real-time payments, and Same Day ACH, PaymentsJournal sat down with Michael Herd, senior vice president of ACH Network Administration at Nacha. Joining us in the conversation was Sarah Grotta, director of the Debit and Alternative Products Advisory Service at Mercator Advisory Group. PaymentsJournalUnpacking the ACH Network’s Significant GrowthPaymentsJournal Unpacking the ACH Network’s Significant GrowthPaymentsJournaljQuery(document).ready(function ($){var settings_ap98676008 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"98676008",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_82944_2",settings_ap98676008); }catch(err){ console.warn("cannot init player", err); } }); Defining the difference between payment types Before delving into the growth of the ACH Network, Herd and Grotta began by explaining the differences between faster payments, real-time payments, and Same Day ACH. Too often, the media and public use these terms interchangeably, leading to confusion. “Same Day ACH is the easiest to define and understand because it is an ACH payment that settles on the same day that it is initiated,” began Herd. In contrast, the typical ACH payment—sometimes referred to as core ACH—would settle on the next day or even two days after being initiated. Defining faster payments proves to be a little harder because it’s a general term that can encompass a lot of different payment types. Herd described how faster payments can be understood in three ways. First, and in the broadest sense, “faster payments can be anything that’s faster than a paper check,” he explained. Second, faster payments can refer to a method that has accelerated processing in an existing payment system. A prime example of this is Same Day ACH because it is processed quicker than its traditional counterpart. Finally, faster payments could refer to an entirely new payment type that did not exist a few years ago. For example, Zelle would be fit this definition, as would Same Day ACH. Herd described that because of these differing definitions, faster payments “can be a term that means different things in different contexts, and this can be confusing.” Real-time payments can also be confusing because it can refer to two different things. One is the payment rail run by The Clearing House, known as the RTP network (for Real-Time Payments). This is distinct from the generic term that refer...