For the Record: Why Direct Deposit Benefits American Workers


Michael W. Kahn

Michael W. Kahn


Most of us know the tremendous value of Direct Deposit (especially when payday rolls around). But sometimes it’s good to get it on the record.

That’s exactly what Nacha did recently, as President and CEO Jane Larimer submitted a Statement for the Record to the House of Representatives’ Task Force on Financial Technology, ahead of its Jan. 30 hearing, “Is Cash Still King? Reviewing the Rise of Mobile Payments.”

The statement acknowledged concerns about workers who still receive paper paychecks and might not have quick access to their money. But the 2019 American Payroll Association survey showed that 93% of Americans are paid by Direct Deposit via the ACH Network.

“Most importantly, by using Direct Deposit, workers get the money in their accounts at the opening of business on payday, without having to wait for a paycheck to clear,” wrote Larimer.

She also noted that Same Day ACH enables faster processing of Direct Deposits for people who don’t have a set payday. It’s a popular option, with the use of Same Day ACH for Direct Deposits increasing 117% from 2018 to 2019. That, said Larimer, demonstrates that “there are real benefits to getting people money faster compared to a paper paycheck.”

Along with Larimer’s statement, Nacha was encouraged by Congressional staff to submit for the record its Payments Myth Busting Factsheet, a Direct Deposit vs. Paper Paycheck comparison chart, and a letter from banking trades on the value of Direct Deposit.