Direct deposit is one of the most useful and convenient ways to pay employees. This infographic highlights why offering this service to employees may be a smart decision for your business.

1. Direct Deposit: Good for
Businesses and their
Employees
82% of employees
are paid by direct deposit
AVERAGE PER-CHECK
SAVINGS
$2.87 - $3.15
AVERAGE PER-CHECK SAVINGS
USING ELECTRONIC PAY STATEMENT
$1.20
By paying employees with
weekly paycards, business-
es can save significant
costs:
Average yearly savings for
businesses with 10
employees
$2,100
Average yearly savings
for businesses with 100
employees
$21,000
May is Direct Deposit Month
Reduced costs involved with
re-issuing checks that are lost
or stolen
Employee pay is direct deposited onto a paycard (or
payroll card), easing the process for employers of
reconciling their payroll bank account. By reducing the
printing and delivery of paper checks, employers save
time and money, while lessening concerns for lost or
stolen payroll checks.
With this process, direct deposit is available for all -
particularly helpful for those employees who don't
have a bank account. Employees can make purchases
and pay bills using a pay card, without the need to pay
fees at a check-cashing store. Many paycard programs
offer employers an online portal that allows them to
manage all aspects of their program.
Direct deposit offers employers a safe, convenient way
to electronically pay their employees.
Payroll funds are deposited into accounts, so employees
can access their wages immediately on payday.
Sources:
https://www.nacha.org/news/new-nacha-survey-shows-adoption-and-awareness-direct-deposit-ach-continues-build
NACHA, The Electronic Payments Association (annual savings for one weekly employee is $211 ($2.87 + $1.20 for 52 weeks)
http://www.paychex.com/articles/payroll-taxes/benefits-of-direct-deposit-to-employees-and-employers
M. Fellowes, M. Mabanta. “Banking on Wealth: America’s New Retail Banking Infrastructure and Its Wealth-Building Potential.” Brookings
Institution. 2008. http://www.brookings.edu/~/media/research/files/reports/2008/1/banking%20fellowes/01_ banking_fellowes.pdf
“2010 Report On Check Casher And Basic Banking Fees.” Massachusetts Division of Banks. 2010. http://www.mass.gov/ocabr/docs/dob/-
checkcashreport2010.pdf
“2010 Report On Check Casher And Basic Banking Fees.” Massachusetts Division of Banks. 2010. http://www.mass.gov/ocabr/docs/dob/-
checkcashreport2010.pdf
M. Flores, “Analysis of Network Branded Pay Cards: Comparative Analysis of Pay Cards to other Payment Options.” Bretton Woods, Inc. 2011.
http://bretton-woods.com/media/51f57d9869e66aa1ffff8159ffffd502.pdf
Paycard Benefits
Other Benefits
Payroll Checks vs. Payroll Cards
No stop-payment charges
levied by a bank when a check
goes missing
Savings in absenteeism (when
employees must take extended
breaks to deposit or cash their
checks)
Significantly less risk
of identity theft due to
lost or stolen checks
Eliminating costs of printing
and distributing paystubs
What Americans without
bank accounts pay at
check cashing outlets,
payday lenders and bill
pay centers
$8 billion
Typical amount in fees
incurred by employees
who use paycards
$0
Average cost of basic
checking account
$273
The new generation of paycard programs is gaining
popularity among employers and their employees.
Before deciding on a paycard program for your
business, do your research to make sure you select a
program that best meets the needs of your business
and your employees.
Learn more about paycards and how they can meet the needs of your business and your
employees at payx.me/deposit.