CU*Answers said it is discontinuing its direct deposit encoding processing service this spring.

The Michigan-based provider of data and electronic check processing and other services to about 165 credit unions cited the "many documented benefits for moving to a Check 21 solution" in its announcement.

They include reduced use of paper and dependence on courier services as well as enhanced image retrieval and disaster recovery, the company said. Remaining direct deposit encoding clients also have seen courier costs rise significantly because of reduced volume, CU*Answers said.