Oct. 14, 2010 -- NACHA-The Electronic Payments Association®, the Association for Financial Professionals (AFP), and the American Payroll Association (APA) today announced the formation of the Electronic Payroll Coalition. Designed to promote the benefits of electronic payroll for all audiences, the three organizations have joined forces to drive awareness and adoption of electronic payroll.
Direct Deposit and payroll cards provide a safe option for payroll and create enhanced security when compared to paper checks. According to the AFP 2010 Payments Fraud Survey, check fraud is the number one type of payments fraud. In eliminating the paper paycheck, an employer ensures safe receipt of pay, and the employee is protected against stolen or lost checks.
"Electronic payroll benefits everyone," said Janet O. Estep, president and CEO, NACHA. "Quite simply, electronic payroll is the safe, smart, and green way to be paid, generating significant benefits for both the employer and the employee."
Electronic payroll creates a cost-effective payroll solution. Employers save anywhere from $2.87 to $3.15 per payment by using Direct Deposit instead of paper checks. That savings translates to nearly $19,000 a year for a company with 100 employees, and $5.7 million per year for an organization of 30,000.
"Payroll cards and Direct Deposit work together to enable electronic payroll processing for all employers," said David Bellinger, AFP's director of payments. "Achieving 100 percent adoption of electronic payroll provides employers with increased efficiency, decreased costs, and simplified payroll procedures."
Employees themselves also benefit by using electronic payroll options. Electronic payroll provides ease of use, time savings, increased security, immediate access to the payment, and certainty around the payment. In fact, 97 percent of those who use Direct Deposit are very satisfied with it.
In addition to Direct Deposit, payroll cards bring the benefits of electronic wage payment to employees without bank accounts who could not otherwise participate in electronic payroll. Employees report that the payroll card provides increased convenience over paper check options, allowing them to receive their pay without having to go somewhere to cash a check.
"Less time at the bank or credit union, immediate access to funds, and guaranteed receipt of funds make Direct Deposit and payroll cards the intelligent, safe solutions for receiving wages," said Dan Maddux, executive director of the APA. "In fact, our recent ‘Getting Paid In America’ survey found that 96 percent of respondents are paid electronically. The goal of the Electronic Payroll Coalition is to continue this positive trend and ensure that people recognize the inherent benefits and embrace electronic payroll solutions."
Electronic payroll also enables employees to increase their savings via split Direct Deposit, the ability to deposit payroll into multiple accounts. A NACHA study concluded that consumers who split their Direct Deposit save up to $90 more per month than those who use another method to save.
About the Electronic Payroll Coalition
NACHA -- The Electronic Payments Association, the Association for Financial Professionals (AFP), and the American Payroll Association (APA) founded the Electronic Payroll Coalition to drive awareness of the benefits of electronic payroll, both Direct Deposit and payroll cards. Employers and employees in all work environments benefit from the time- and cost-savings, security, and reliability of electronic payroll. For more information on the Electronic Payroll Coalition, contact Ian Macoy, managing director, ACH Network Strategy and Outreach, NACHA, at firstname.lastname@example.org.
About NACHA -- The Electronic Payments Association
NACHA supports the growth of the ACH Network by managing its development, administration, and governance. The ACH Network facilitates global commerce by serving as a safe, efficient, ubiquitous, and high-quality electronic payment system. NACHA represents nearly 11,000 financial institutions through 18 regional payments associations and direct membership. Through its industry councils and forums, NACHA brings together payments system stakeholder organizations to encourage the efficient utilization of the ACH Network and develop new ways to use the Network to benefit its diverse set of participants. To learn more, visit www.nacha.org, www.electronicpayments.org, and www.payitgreen.org.
About the Association for Financial Professionals (AFP)
The Association for Financial Professionals (AFP) is the daily resource for more than 16,000 members, providing news, economic research, certification programs, networking events, analytical tools, training, and public policy representation to legislators and regulators.
AFP's global reach extends to over 150,000 treasury and financial professionals worldwide, including AFP of Canada; London-based gtnews, an on-line resource for the treasury and finance community; and bobsguide, a financial IT solutions network. For more information, visit www.afponline.org.
About the American Payroll Association (APA)
Established in 1982, the American Payroll Association (APA) is the nation's leader in payroll education, publications, and training. The nonprofit association conducts more than 300 payroll training conferences and seminars across the country each year and publishes a complete library of resource texts and newsletters. Every year, nearly 20,000 professionals attend APA training sessions. Representing more than 22,000 members, APA is the industry's highly respected and collective voice in Washington, D.C. Visit APA online at www.americanpayroll.org.