Direct Deposit is a smart way to pay employees. 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?

Frequently Asked Questions Testimonials

TrustBank offers businesses the capability of providing direct deposit to their employees. With direct deposit, employee paychecks are deposited directly into the employee's account of choice.

Employee Benefits:

• Faster access to paychecks
• Eliminates the hassle of manually collecting and depositing paychecks

Employer Benefits:

• Easier bookkeeping
• Eliminates the expense of check writing

What is Direct Deposit?

Direct Deposit is the electronic transfer of a payment from a company or organization into the checking or savings account of employees, retirees, taxpayers, vendors or shareholders. The payment can be divided among several different accounts and, in many cases, between different financial institutions.

The most popular application of Direct Deposit is for payroll, but it can also be used for many other types of payments, including:

• Annuities
• Bonuses and commissions
• Dividend and interest payments
• Pensions
• Travel expense settlements
• Vendor payments
• Tax refunds
• Social Security or other government payment
  

Fact Sheet

Direct Deposit is the electronic transfer of a payment from a company or organization into your checking or savings account.

Direct Deposit Statistics

• Approximately 61 percent of consumers receive one or more payments via Direct Deposit. (55 percent of employees, 80 percent of Social Security recipients).
• Seventy-one percent of employees who have Direct Deposit available use it.
• Ninety-seven percent of those who use Direct Deposit are very satisfied with it.
• In 2001, the ACH Network processed more than 3.7 billion payments worth more than $4.0 trillion in funds (NACHA).
• Companies can save up to $0.50 - $0.60 per payment by using Direct Deposit instead of checks.
• Studies show that consumers may spend the equivalent of three workdays each year going to the bank.
• The chance of having a problem with a check is 20 times greater than with Direct Deposit.
• Of the 922 million payments FMS distributed in FY2002, there were more than $69.1 million in forged checks, $2.2 million in counterfeit checks, and 4.3 million in altered checks (Financial Management Services).
• On average, the U.S. government spends 51 cents less to process a Direct Deposit transaction than to process a check (U.S. Treasury).
• The U.S. Treasury Department received nearly 1.5 million claims for lost or stolen checks.
• Almost 0.5 percent of U.S. annual gross domestic product is spent on printing, issuing, sorting and mailing checks.
• Nearly 40 million people had their tax returns deposited directly into their bank accounts during the 2002 filing season (Internal Revenue Service)
• Taxpayers who file electronically and choose Direct Deposit receive their refunds in an average of 14 days, less than half the time it takes to receive a refund from a paper return. (Internal Revenue Service)

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

>Back to Business Home