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Public interest in ACH continues to rise — GhIPSS
Chief Executive of GhIPSS, Archie Hesse

Public interest in ACH continues to rise — GhIPSS

The use of electronic forms of payment, as opposed to cash, continues to witness a steady rise as the various electronic payment options record growth in patronage. 

According to the half-year report by the Ghana Interbank and Payment Settlement Systems (GhIPSS), payments through Automated Clearing House (ACH) have seen significant increase in the number of people using the payment option as well as the value of money transferred through it. 

The increase in patronage affected both the Direct Credit and Direct Debit forms of ACH.

The half-year report indicates a 30.66 per cent increase in the value of direct credit transactions to GH¢7.6 billion, while the volume also went up by 15.45 per cent to 2.3 million transactions. 

Direct Debit, on the other hand, which is the lesser used of the two, also witnessed a huge jump in the value of transactions, going up by 115.78 per cent to GH¢66.8 million, while the volume of Direct Debit transactions went up by 43.4 per cent to 421,913 transactions.

GhIPSS and the banks are currently rolling out a public campaign on ACH and the growth in the volumes and values of ACH transactions can be attributed to similar campaigns that were undertaken last year.

The ACH is an electronic form of payment that allows a bank customer to instruct his or her bankers to deduct a specific amount of money and transfer it to the account of another person or institution with a different bank. 

It can be used for repetitive transfers as well as one-off transfers. 

Currently, many firms use ACH to pay salaries, insurance claims, as well as payment of dividends, while individuals use it to pay for mortgages, items bought on hire purchase and to transfer money into the bank accounts of others. 

Some also use it to pay utility bills, insurance premiums, loan re-payments, rent and subscription-based service payments among others.

In an interview, the Chief Executive of GhIPSS, Archie Hesse, said the convenience and security that customers got from using ACH had also helped in increasing its patronage. 

He urged institutions and individuals who were not using ACH to approach their banks and enquire about the service, stressing that the GhIPSS, together with the banks, would continue to create the awareness of ACH and other non-cash forms of payments.

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