People outside the transaction processing industry probably spend little time thinking about how their debit and credit charges move from store purchase to online bank account transaction, in mere moments. They don't realize that a sophisticated sequence takes place with each swipe of a card - the transaction moves from "Originator" to the "Originating depository financial institution (your bank)," to the "Receiving financial depository institution (the store's bank)" and to the "Receiver." That process moves the "charge" from real world interaction to electronic data, almost instantly. As outlined in this month's "Publisher's Column," the Automated Clearinghouse (ACH), which makes this type of commerce possible, and other electronic processes, developed over decades.

And probably fewer still realize that a local Atlanta transaction processing company is leading the way in the evolution of ACH activity. More than two-thirds of the nation's 10 billion annual ACH payments are processed using CheckFree PEP+ software.

The ACH is a nationwide system for the electronic transfer of funds. Specifically, it is a system of "interbank clearing" of electronic payments for the participating depository financial institutions. The Federal Reserve and Electronic Payments Network act as ACH Operators, central clearing facilities that allow financial institutions to transmit or receive ACH entries.

ACH payments take many forms, including:

The number of ACH payments made by financial institutions each year is staggering. In 2002, more than 8.05 billion transactions took place, which was up 13.6 percent from 2001. The total value of non-government payments was valued at $21.7 trillion. The numbers jump to 8.94 billion payments in 2002, when you include Federal government transactions, a total worth more than $24.4 trillion.

CheckFree is a leading technology solution provider in this space. The company's PEP+® is a "mainframe, real-time system that enables the origination and receipt of electronic payments through the ACH." CheckFree PEP+, which makes the high volumes of edits and interfaces to the ACH network, more efficient, is recognized as the "gold standard" for the industry.

It is clear that the future holds a rising tide of electronic transactions that must be processed safely, efficiently and accurately. The leadership of CheckFree and other TP providers will ensure that systems evolve in line and in time with this increasing need.