Congressman Gerald E. “Gerry” Connolly of Virginia issued a proclamation into the Congressional Record designating May as Direct Deposit and Direct Payment via ACH Month.
Celebrated annually in May, Direct Deposit and Direct Payment via ACH Month seeks to raise awareness that the electronic deposit of payroll yields important benefits to employees, their employers, and financial institutions.
Congressman Connolly stated, “Today, more than 80 percent of U.S. workers receive their regular pay using Direct Deposit via ACH, and consumers pay 800 million bills each month with Direct Payment via ACH.
“Direct Deposit and Direct Payment are an easy, safe, convenient, cost-effective and environmentally friendly way to make and receive payments. Use of Direct Deposit and Direct Payment enable consumers and businesses alike to save costs, save time and protect the environment by eliminating the time, hassle and expense of writing and cashing paper checks and making trips to the bank or credit union,” Connelly said.
According to the results of a new survey conducted by Javelin Strategy & Research on behalf of NACHA—The Electronic Payments Association® and America Saves, a campaign managed by the Consumer Federation of America, usage of Direct Deposit via ACH has increased to 82 percent of U.S. workers, up from 74 percent in 2011.
The survey’s resulting white paper, “Beyond Simple and Safe: Opportunities to Expand the Use of Direct Deposit via ACH for Payroll,” also details that satisfaction among users of Direct Deposit via ACH and awareness among nonusers are also high at 87 percent and 79 percent, respectively.
Additionally, nearly one in four employees (24 percent) split their payroll deposits, typically placing their deposit in a checking account and also designating a portion of funds to go to a savings account, 401(k), business account, money market or to a prepaid card.
NACHA also details the survey findings in a new infographic that captures the sentiments of consumers who use Direct Deposit via ACH and identifies the holdouts.