Direct Deposit

Direct Deposit is a smart way to pay employees, retirees, and shareholders. It can save your company time and money, increase productivity, and improve your employees' job satisfaction.

Did you know that some companies save up to $0.60 per payment by using Direct Deposit instead of checks?

Benefits of Direct Deposit:

• Fewer checks to print and store
• Facsimile signature security isn’t necessary since no signatures are required
• Lost and stolen checks eliminated
• Reduced financial institution service charges -  Typically, it costs more to process a paper check through an organization’s account
• Simplified account reconciliation - Account statements will have a single dollar amount for the total amount of the Direct Deposit transactions, vs. individual check amounts to reconcile
• Reduced fraud - Less potential for counterfeit checks, stolen checks or signature plates, altered amounts, and forged signatures
• Rarely a problem  - The chance of having a problem with a check is 20 times greater than with Direct Deposit
• Lowered administration costs due to elimination of manual check preparation
• Reported savings of more than 40 cents in processing costs for each paper check converted to Direct Deposit
• Added incentive to competitively attract employees
• Increased productivity due to employees spending less time away from work to cash or deposit a payroll check

Source: Direct Deposit and Direct Payment, www.directdeposit.org and www.directpayment.org.