Posted April, 28 2003ORLANDO, Fla., April 28 -- NACHA - The Electronic Payments Association presented the 2003 George Mitchell Payments System Excellence Award today at its PAYMENTS 2003 conference to Cisco Systems, Inc. of San Jose, California. Cisco Systems was recognized for its achievement of paying 96 percent of its employees by Direct Deposit.
"Direct Deposit is the safest, most reliable, and most convenient way to get paid," said Elliott C. McEntee, President and Chief Executive Officer of NACHA. "Ninety-six percent participation is an extraordinary achievement when you consider that Direct Deposit is voluntary. NACHA congratulates Cisco Systems on its achievement and on receiving this year's award."
"We're honored to receive this award, which represents the success Cisco's payroll department has had with our Direct Deposit program. Direct Deposit, along with our online payment system, eChecks, saves Cisco over $1 million a year," said Si White, Senior Director, Global Employee Services at Cisco Systems.
In calendar year 2002 Cisco processed over 828,00 payments to its 26,000 U.S. employees via Direct Deposit, including reimbursement of flexible spending accounts, employee stock purchase plan refunds, tuition reimbursement and others. At Cisco, Direct Deposit is easily accessible on the corporate Intranet along with answers to frequently asked questions. Cisco continues to improve participation in this voluntary program through the monthly monitoring of unclaimed checks over 90 days old. In addition to payroll, Cisco pays 98 percent of its expense reports to employees using Direct Deposit.
Nationwide, NACHA estimates that 60 percent of private-sector employees get paid by Direct Deposit. NACHA also estimates that a total of 130 million people in the United States use Direct Deposit to receive their pay, travel and expense reimbursements, pensions, dividends, annuities, tax refunds, and Social Security, Veterans and other government benefits. Additional information about Direct Deposit, including ways that companies and financial institutions can participate in National Direct Deposit and Direct Payment Month in May 2003, is available at www.directdeposit.org.
Each year NACHA presents the George Mitchell Payments System Excellence Award in recognition of individuals and organizations that have improved the nation's payments system. The award is named in honor of George Mitchell, former Vice-Chairman of the Federal Reserve Board of Governors.
About NACHA - The Electronic Payments Association
NACHA is the leading organization in developing electronic solutions to improve the payments system. NACHA represents more than 12,000 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.