10 Statistics Charting the Shift from Checks to ACH in Wholesale Trade

Businesses across wholesale trade are rapidly abandoning paper checks for electronic payment methods, creating a fundamental shift in how companies manage their financial operations. Recent data reveals dramatic changes in payment preferences, with traditional check usage hitting record lows while ACH and digital alternatives gain widespread adoption.

The transition from checks to ACH payments in wholesale trade represents the most significant change in B2B payment behavior in decades, with measurable impacts on processing costs, transaction speeds, and operational efficiency. Organizations are actively shifting to ACH as acceptance rates approach universal levels and real-time payment capabilities expand alongside traditional electronic transfer methods.

This payment evolution affects transaction volumes, processing expenses, vendor relationships, and cash flow management across wholesale trade sectors. The data shows clear patterns in adoption rates, cost structures, and the operational drivers pushing businesses away from paper-based payment systems toward electronic alternatives.

1) 33% of wholesale trade B2B payments use checks, the lowest on record

Check usage continues to decline for B2B payments in North America, hitting 33% in 2022. This marks the lowest level since the Association for Financial Professionals began tracking this data in 2004.

The decline represents a major shift in how businesses handle payments. In 2004, more than 80% of B2B payments relied on paper checks.

Companies are moving away from checks at an accelerating pace. The 2022 survey data shows this trend affects businesses across all sectors, including wholesale trade operations.

Recent research confirms this pattern continues. Only 8% of organizations use checks as their primary payment method according to 2025 survey data.

The 33% figure reflects businesses actively choosing electronic payment methods. This shift impacts cash flow, processing times, and operational costs for wholesale trade companies.

Paper check usage dropped nearly 50 percentage points over less than two decades. This change affects how wholesale businesses manage vendor payments, supplier relationships, and internal accounting processes.

2) Nearly 99% of vendors in wholesale trade accept ACH payments

Wholesale trade vendors have embraced ACH payments at unprecedented rates. Nearly 99% of suppliers now accept electronic bank-to-bank transfers for business transactions.

This widespread acceptance reflects the practical benefits ACH offers wholesale operations. Processing costs are significantly lower than traditional payment methods like checks or wire transfers.

Business ACH payments provide enhanced security through NACHA's protected network infrastructure. Unlike paper checks, ACH transactions cannot be lost or stolen during transit.

The payment method has become the standard for vendor relationships in wholesale trade. Businesses can initiate payments directly from their bank accounts without additional processing fees.

Most wholesale vendors now expect ACH as the primary payment option. Companies that still rely on checks face longer processing times and higher administrative costs.

The shift has streamlined accounts payable operations across the industry. ACH payment processing solutions have become essential tools for managing vendor relationships efficiently.

This near-universal acceptance has created a competitive advantage for businesses that adopt ACH early. Vendors often prioritize customers who can pay electronically and settle invoices faster.

3) Check payments and ACH payments are nearly equal in volume in some sectors

While many industries show clear trends toward digital payments, certain wholesale trade sectors maintain a more balanced split between payment methods. Some businesses still process similar volumes of check and ACH transactions.

The transition varies significantly by company size and industry type. Mid-market companies often show the most balanced usage patterns between traditional and electronic payment methods.

Regional differences also play a role in payment method preferences. Companies in certain geographic areas maintain higher check usage rates compared to others.

B2B ACH payments volume continues to increase as businesses gradually shift away from paper-based processes. However, the pace of change differs across sectors.

Payment processing capabilities and existing vendor relationships influence these patterns. Companies with established check-based workflows may maintain dual payment systems longer during their digital transformation.

The equal volume scenario typically represents a transition period rather than a permanent state. Most businesses eventually move toward higher ACH adoption rates over time.

4) 60% rise in real-time payments alongside ACH migration

Real-time payments grew 60% as businesses move away from traditional payment methods. This growth happens at the same time companies switch from checks to ACH transactions.

Only 1% of bank customers create 90% of real-time payment volume. This shows that large businesses drive most of the payment-rail migration trends happening today.

Real-time payments could replace $18.9 trillion in current ACH and check transactions by 2028. B2B real-time payments present strong growth opportunities for companies looking to speed up cash flow.

The shift benefits businesses through faster payment processing and better cash management. Companies can receive funds instantly instead of waiting days for checks to clear or ACH payments to process.

Same-day ACH enables real-time cash application for accounting teams. They can match payments to invoices within hours instead of dealing with multi-day delays from traditional payment methods.

5) 92% of organizations still receive paper checks in wholesale trade

Despite the digital payment revolution, 92% of organizations continue accepting paper checks for incoming payments. This statistic reveals a significant gap between available technology and actual business practices.

The persistence of check acceptance creates operational challenges for wholesale trade companies. Processing paper checks requires manual handling, physical deposits, and extended clearing times that can impact cash flow.

Many organizations maintain dual payment systems to accommodate both digital and paper transactions. This approach increases administrative overhead while companies transition away from traditional payment methods.

The widespread acceptance of checks indicates that businesses still rely heavily on legacy payment systems despite knowing their inefficiencies. Trading partners often dictate payment methods, forcing companies to accept checks even when they prefer electronic alternatives.

Organizations accepting paper checks face higher processing costs and fraud risks. The 92% acceptance rate demonstrates that wholesale trade businesses have significant room for improvement in payment modernization efforts.

6) ACH credit is used by 87% of wholesale trade businesses

ACH credit has become the dominant payment method in wholesale trade operations. This electronic payment system allows businesses to send funds directly from their bank accounts to suppliers and vendors.

The high adoption rate stems from ACH credit's ability to handle large transaction volumes efficiently. Wholesale businesses typically process hundreds of payments monthly, making automated systems essential for operations.

ACH credit transactions cost significantly less than traditional payment methods. Processing fees range from $0.20 to $1.50 per transaction, compared to credit card fees that can reach 2-3% of transaction value.

The payment method also reduces fraud risks through bank-level security protocols. Digital payment adoption in businesses has accelerated as companies prioritize secure transaction processing.

ACH credit provides better cash flow predictability for wholesale operations. Payments typically clear within 1-3 business days, allowing companies to plan inventory purchases and operational expenses more effectively.

Most accounting software systems integrate seamlessly with ACH credit processing. This compatibility eliminates manual data entry and reduces processing errors that commonly occur with paper-based payment methods.

7) Check usage in wholesale trade dropped from 50% to 34% between 2014 and 2020

Check payments lost significant ground in wholesale trade during this six-year period. The 16 percentage point decline shows businesses moving away from paper-based transactions.

This shift reflects broader changes in how companies handle B2B payments. Wholesale traders needed faster, more trackable payment methods than traditional checks could provide.

The decline happened gradually but consistently across the period. Each year brought fewer check transactions as businesses adopted electronic alternatives.

Several factors drove this change in wholesale trade specifically. Large transaction volumes made electronic processing more cost-effective than manual check handling.

ACH fraud activity has increased alongside greater adoption, but security measures continue improving. Wholesale businesses now prioritize payment speed and automation over traditional paper methods.

The trend accelerated as more trading partners required electronic payments. Companies that continued using checks found themselves at a competitive disadvantage in processing times.

8) The Federal Reserve reports steady decline in check volumes annually

The Federal Reserve's 2021 survey reveals check volumes decrease 7%-8% annually. This consistent decline affects how businesses process payments and manage cash flow.

Check usage dropped dramatically from 19.3 billion payments in 2000 to just 7.1 billion in 2018. This represents a 63% decline over 18 years.

The Federal Reserve's data shows a 51% volume decline between 2010 and 2020. Payment values also decreased significantly during this period, though less dramatically than transaction counts.

Despite these declines, checks still represent $25.8 trillion in payment value as of 2018. This positions checks as the second-largest payment method by value, trailing only ACH credit transfers.

Financial institutions must still maintain the same clearing processes despite reduced volumes. This creates operational challenges as banks need to balance infrastructure costs with declining transaction numbers.

The COVID-19 pandemic accelerated the shift away from paper payments. Businesses increasingly adopted digital payment methods, further reducing their reliance on traditional check processing systems.

9) The average cost of check processing has increased, driving ACH adoption

Check processing costs have risen significantly for businesses over the past two decades. The Federal Reserve's data shows that unit costs to process checks increased by 13.3% in just one year, jumping from 4.5 cents to 5.1 cents per transaction.

Meanwhile, ACH processing costs dropped by 15.4% during the same period. This cost difference creates a compelling case for businesses to switch payment methods.

Current data reveals that issuing paper checks costs businesses between $2.01 and $4.00 per transaction. Receiving paper checks adds another $1.01 to $2.00 in processing expenses.

ACH payments cost significantly less to process than traditional paper checks. This price gap continues to widen as check volumes decline and fixed infrastructure costs get spread across fewer transactions.

Businesses report that increased efficiency drives 92% of electronic payment transitions. However, cost reduction remains a strong motivator for 82% of companies making the switch from checks to ACH payments.

10) Wholesale trade ACH volume outpaces checks in transaction count

Transaction volume data shows ACH payments now dominate wholesale trade by sheer number of payments processed. The shift represents a fundamental change in how businesses handle routine transactions.

B2B ACH payments volume increased 7.5% as companies actively moved away from paper checks. This growth pattern reflects widespread adoption across wholesale trade sectors.

Check processing requires manual handling at multiple points. Each paper check needs physical transport, manual verification, and individual processing steps that slow payment cycles.

ACH transactions process automatically through electronic networks. Wholesale businesses can submit hundreds of payments in batches that clear within standard timeframes.

The volume advantage becomes clear when comparing processing capacity. ACH Network processed 30 billion payments in 2022, demonstrating the system's ability to handle massive transaction loads.

Wholesale trade companies report processing 10 times more ACH transactions than checks monthly. The electronic format allows businesses to handle supplier payments, customer refunds, and operational expenses through streamlined workflows.

Transaction count metrics show checks declining while ACH volumes climb consistently year over year.

Drivers Behind the Shift From Checks to ACH

Companies are abandoning checks for ACH payments due to significant cost savings, enhanced security features, and the broader digital transformation reshaping wholesale trade operations. These factors create compelling business cases for payment modernization.

Cost and Efficiency Advantages

ACH payments deliver substantial cost reductions compared to traditional check processing. The average cost to process a check ranges from $1 to $3 per transaction, while ACH payments typically cost between $0.20 to $0.50.

Key Cost Savings:

• Elimination of check printing and postage expenses
• Reduced manual processing and data entry labor
• Lower bank fees for electronic transactions
• Decreased storage and reconciliation costs

Processing time improvements drive additional efficiency gains. Checks require 3-5 business days for clearing and settlement. ACH payments clear within 1-2 business days, with same-day ACH options available.

Labor costs decrease significantly with ACH adoption. Manual check handling requires staff time for printing, mailing, depositing, and reconciling transactions. Electronic payments automate these processes and reduce human error rates.

B2B payments are rapidly moving away from checks as companies recognize these financial benefits. The median check volume has dropped by approximately half since 2015.

Security Improvements With ACH

ACH networks provide enhanced security protocols that surpass traditional check vulnerabilities. Check fraud affects thousands of businesses annually through altered payee names, amount modifications, and counterfeit instruments.

Electronic ACH transactions include multiple security layers:

• Encryption protects payment data during transmission
• Authentication verifies sender and receiver identities
• Digital signatures prevent transaction tampering
• Audit trails create permanent transaction records

Banks monitor ACH transactions through automated fraud detection systems. These systems flag unusual payment patterns and suspicious activities in real-time.

Physical check risks include mail theft, forgery, and lost payments. ACH eliminates these physical security concerns entirely. Payment information transmits directly between banking systems without paper handling.

Regulatory compliance improves with electronic payments. ACH transactions maintain detailed digital records that satisfy audit requirements and regulatory reporting standards.

Impact of Digital Transformation in Wholesale Trade

Wholesale trade companies integrate ACH payments into broader digital transformation initiatives. Modern accounting systems connect directly with ACH networks for seamless payment processing.

Enterprise resource planning (ERP) systems now include built-in ACH capabilities. These integrations eliminate manual data entry between accounting and payment systems. Invoice-to-payment workflows become fully automated.

Remote work requirements accelerated digital payment adoption. Check processing requires physical presence for printing, signing, and mailing. ACH payments enable remote approval and processing capabilities.

Supply chain digitization demands electronic payment methods. Trading partners increasingly require digital payment options for automated procurement systems. Manual check processes create bottlenecks in digital supply chains.

Customer expectations drive payment modernization. Vendors and suppliers expect faster payment methods with real-time status updates. Check volumes continue declining as businesses meet these digital expectations.

Data analytics capabilities improve with electronic payments. ACH transactions provide structured data for cash flow analysis, vendor performance tracking, and financial forecasting.

Broader Implications for Businesses

The transition from checks to ACH payments creates significant operational changes that affect daily business operations and financial planning. Companies experience improved cash flow predictability and reduced administrative overhead, though they must address technology integration requirements.

Cash Flow Management Benefits

Electronic payments eliminate the uncertainty of check processing times. Businesses can predict exactly when payments will arrive instead of waiting for mail delivery and bank clearing.

Predictable Payment Timing:

• ACH payments process within 1-3 business days
• Same-day ACH options available for urgent transactions
• No delays from postal service issues

Companies reduce costs associated with check handling. Bank fees for check deposits average $0.50-$2.00 per item, while ACH transactions typically cost under $0.30.

Operational Cost Reductions:

• Lower transaction processing fees
• Reduced staff time for deposit preparation
• Eliminated transportation costs to banks

The checks are causing cash flow challenges survey found that 91% of businesses still use checks despite these drawbacks. Faster payment processing means improved working capital management and better supplier relationships.

Integration Challenges and Solutions

Businesses must upgrade their accounting systems to handle electronic payment data. Many legacy systems require middleware solutions to process ACH transaction information properly.

Technology Requirements:

• API integrations with banking platforms
• Updated accounting software versions
• Staff training on new payment workflows

Security protocols become more critical with digital payments. Companies need encryption standards and fraud monitoring systems that exceed basic check security measures.

The transition to digital payments requires careful planning but delivers measurable efficiency gains. Most businesses complete the transition within 6-12 months with proper project management.

Implementation Best Practices:

• Phase rollout by payment type
• Maintain dual systems during transition
• Establish clear approval workflows

Frequently Asked Questions

Businesses transitioning from checks to ACH face specific challenges around timing, costs, and security measures. The wholesale trade sector shows mixed adoption patterns with 92% still receiving paper checks despite widespread ACH acceptance.

What trends have been observed in the adoption of ACH payments in the wholesale trade industry?

Wholesale trade businesses are experiencing a significant shift toward electronic payments. Nearly 99% of vendors now accept ACH payments, marking widespread infrastructure readiness across the sector.

Check usage has dropped to historic lows, with only 33% of B2B payments in wholesale trade still using paper checks. This represents the lowest recorded percentage for check dependence in the industry.

Real-time payment adoption has surged by 60% alongside traditional ACH migration. Companies are embracing faster settlement options to improve cash flow management and reduce payment delays.

The shift to ACH and electronic B2B payments reflects broader industry preferences for automated processing over manual check handling.

How has the volume of check payments changed in recent years compared to ACH transactions in wholesale trade?

Check payment volumes have declined at an average rate of 6.7% per year in recent data. This decline has been consistent but less dramatic than other developed countries experiencing similar transitions.

Some wholesale trade sectors now show nearly equal volumes between check and ACH payments. This balance point indicates the industry is in active transition rather than complete conversion.

The Federal Reserve's payment study data shows ACH transactions growing while check volumes continue their steady decrease across all merchant types.

Despite electronic growth, 92% of wholesale trade organizations still receive paper checks regularly. This indicates that complete elimination of check processing remains years away for most businesses.

What are the primary factors driving wholesale traders to switch from using checks to ACH for transactions?

Processing efficiency drives much of the conversion from paper to electronic payments. ACH transactions require less manual handling, reducing labor costs and processing time for accounts receivable teams.

Cash flow improvement motivates many businesses to adopt electronic payment methods. ACH payments settle faster than mailed checks, providing quicker access to funds for working capital needs.

Cost reduction plays a major role in payment method selection. Electronic processing eliminates printing, mailing, and bank deposit costs associated with paper check transactions.

Risk management concerns push companies toward electronic alternatives. ACH payments reduce theft risks and provide better audit trails compared to physical check handling processes.

Can you detail the cost implications for businesses when transitioning from check to ACH payments in wholesale trade?

Direct processing costs favor ACH over check payments in most scenarios. Check processing typically costs $3-5 per transaction including printing, postage, and bank fees, while ACH transactions cost $0.20-0.50 each.

Labor expense reductions provide significant savings for high-volume payers. Automated ACH processing eliminates manual check writing, envelope stuffing, and mailing tasks that consume staff time.

Float benefits shift when moving from checks to electronic payments. Companies lose the timing advantage of check clearing delays but gain predictable settlement schedules for better cash management.

Implementation costs include system upgrades and staff training expenses. Most businesses recover these initial investments within 6-12 months through ongoing processing savings.

What impact has the shift from checks to ACH had on the efficiency of payment processes in the wholesale trade sector?

Same-day ACH processing has transformed cash application workflows significantly. The technology showed 45.3% volume growth in 2024, handling over $3.2 trillion in transaction value for faster business operations.

Automated matching capabilities reduce manual reconciliation work. Electronic payments include more detailed remittance information, allowing accounts receivable systems to automatically apply payments to invoices.

Exception handling decreases with electronic payment adoption. ACH transactions face fewer processing delays compared to checks that can be lost, damaged, or returned for insufficient funds.

Same-day ACH adoption accelerates cash application processes, enabling businesses to update customer accounts and financial records within hours instead of days.

How are fraud and security concerns being addressed with the increase in ACH payment usage in the wholesale trade industry?

ACH networks employ multiple security layers including encryption and authentication protocols. These systems provide stronger protection than physical checks, which can be intercepted, altered, or counterfeited during mail delivery.

Bank verification processes have strengthened for electronic transactions. Financial institutions use real-time account validation and fraud detection algorithms to identify suspicious payment patterns before processing.

Audit trails offer superior tracking capabilities compared to paper-based systems. Electronic payments create detailed digital records that support forensic analysis and dispute resolution processes.

Companies implement dual authorization controls for ACH payments above specified thresholds. This approach prevents unauthorized transactions while maintaining processing efficiency for routine business payments.

This post is to be used for informational purposes only and does not constitute formal legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Resolve assumes no liability for actions taken in reliance upon the information contained herein.