By switching to direct deposit, businesses can save an average of $176.55 per employee each year, according to a new study from NACHA, the electronic payment association.
Companies in the United States save $605 million annually through direct deposit, the group said. Two out of three employees now use the payment method, a 20% increase over the past two years.
Still, 22 million employed Americans don't have access to direct deposit, NACHA said, citing a 2008 survey from the Consumer Federation of America. Three out of four employees said they would use it if they had the option.
NACHA is encouraging businesses to offer and use of direct deposit and online bill payments during National Direct Deposit and Direct Payment Month, which starts in May. Businesses can log on to www.electronicpayments.org to use a calculator that will compute their cost savings from switching payroll to direct deposit.
