According to figures from the Ghana Interbank Payment and Settlement Systems (GhIPSS), out of this amount, more than GH¢900 million were done through the express option. This shows that increasingly, the banking public comprising both individuals and companies are turning to direct credit for interbank fund transfers.
In January this year, about GH¢1.1 billion worth of transactions were done through ACH Direct Credit. The value went up to about GH¢1.5 billion in April, indicating a consistent rise in the preference for the payment system.
Direct Credit is an electronic payment system where a customer instructs his or her bankers to make payments of a specified amount and on a specified date to another account of a different bank.
Many banks have made this payment system even more attractive by allowing their customers to use their internet banking window to send the ACH requests.
It is suitable for bulk payments such as salaries, insurance premiums and claims as well as payment of dividends, while individuals can also use it to pay for mortgages, and items bought on hire purchase as well as for other forms of interbank transfers.
Although ACH Direct Credit is an initiative of GhIPSS, it is offered through banks just like all other initiatives by the national payment system infrastructure provider. Currently, GhIPSS together with the country’s banks, is running public campaigns to further deepen awareness of ACH Direct Credit.
Convenience of ACH Direct Credit
The Chief Executive of GhIPSS, Mr Archie Hesse, told newsmen that the complexities and delays normally associated with sending or paying someone with an account in a different bank could be avoided with the use of ACH Direct Credit.
He, therefore, encouraged the public to request for ACH services anytime they wanted to make such interbank payments. The GhIPSS boss also urged organisations to use ACH for salary payments, since it enabled their employees to get their money quickly.
He added that insurance companies could also use it to receive premiums, while it also remained one of the most effective ways to pay dividends to shareholders.
Globally, ACH Direct Credit has become the preferred form of interbank payments and banks, particularly those in advanced nations are using the payment system to develop various payment solutions for their clients.
As the patronage of ACH Direct Credit continues to soar, many analysts are hopeful that the campaign to migrate Ghana into a cash-lite regime is on course.