Direct Deposit Campaign Starts
During May, a group that includes NACHA, Electronic Payments Network and the Federal Reserve Banks is encouraging consumers to increase their use of direct deposit and direct payment rather than continuing to use paper checks.
The group, which includes credit unions, banks and others, will target businesses, which can cut costs with direct deposit.
NACHA research has shown that companies with 500 or more employees are more likely to use direct deposit than small (2-49 employees) and medium-sized companies (50 to 499 employees). Research has also shown that although 75% of small businesses were aware of direct deposit, only 26% used the service to pay their employees.
Credit unions seeking small businesses as SEGs might want to cite research done by Tinucci, which in 2003 showed small businesses can save more than $5,000 a year by switching to direct deposit for paychecks.