|
NEWS RELEASE
Media Contact:
May is the Month to
Move Consumers to Electronic Payments
Financial Groups Will Work
Together to Increase Usage During Direct Deposit and
Direct Payment Month
HERNDON, Va. – April 12, 2006 –
This May, banks, credit unions, non-profit
associations, businesses, and governments across the
nation will once again be asking consumers to
increase their use of Direct Deposit and Direct
Payment in place of paper checks. An industry group
led by NACHA, Electronic Payments Network (EPN) and
the Federal Reserve Banks, is sponsoring the month
and encouraging financial institutions and
businesses to actively promote these services to
their customers and employees.
A recent study sponsored by
NACHA (The Response Center 2005) shows that large
companies are much more likely to use Direct Deposit
than small (2-49 employees) and medium (50-499) size
businesses. Although 75 percent of small businesses
surveyed were aware of Direct Deposit, only 26
percent used the service to pay their employees.
Of small business owners, 42
percent that don't use Direct Deposit said they
thought the service was designated for larger
companies. However, a 2003 survey by Tinucci showed
that even small businesses can save more than $5,000
per year by switching employees to Direct Deposit
for paychecks.
"This survey points to a real
opportunity for us in the electronic payments
business to reach out and engage small and medium
size businesses to increase their understanding and
use of Automated Clearing House (ACH) payments,"
said Mark Tizzard, Vice President of Strategic
Migration, Wachovia Bank, and 2006 Chairman of
NACHA's Marketing Management Group**. "As we
continue our consumer advertising campaign, we also
need to strengthen our industry messages that the
ACH network is for all businesses, not just large
corporations. The cost and time savings of Direct
Deposit and Direct Payment could prove especially
helpful to organizations looking to trim budgets and
when time is at a premium."
Businesses and financial
institutions can visit
www.electronicpayments.org
for ideas about how to inform, educate and market to
their audiences about Direct Deposit and Direct
Payment. These ideas include special sign-up events,
advertising, media campaigns and direct mail.
Resource materials are available that will help
convince any size business about the convenience and
time and money saving advantages of these services.
DDDP Month Trade/Add One
"During May, we encourage
businesses and financial institutions to educate
their employees and customers about the convenience,
security and financial benefits of Direct Deposit
and Direct Payment," said Elliott C. McEntee,
president and CEO of NACHA. "These services are no
longer the wave of the future. They are widely used
by millions of Americans who understand that they
can save valuable time and money by getting paid and
paying bills electronically."
Additional information about
Direct Deposit and Direct Payment, including sign-up
information, can be found at
www.electronicpayments.org.
About NACHA - The
Electronic Payments Association
NACHA is the leading
organization in developing electronic solutions to
improve the payments system. NACHA represents more
than 11,000 financial institutions through direct
memberships and a network of regional payments
associations, and 650 organizations through its
industry councils. NACHA develops operating rules
and business practices for the Automated Clearing
House (ACH) Network and for electronic payments in
the areas of Internet commerce, electronic bill and
invoice presentment and payment (EBPP, EIPP),
e-checks, financial electronic data interchange
(EDI), international payments, and electronic
benefits transfer (EBT). Visit NACHA on the Internet
at www.nacha.org.
**About NACHA's Marketing
Management Group
The Marketing Management Group is an industry
representative group appointed with the
responsibility to develop and execute the long-term
marketing strategy and annual tactical plans to
promote electronic payments and build market
awareness. The funding to implement the annual
tactical plans is provided by the Electronic
Payments Network and the Federal Reserve Banks. More
information can be found at the industry Web site,
www.electronicpayments.org.
|
