Nacha, AFP and APA firm electronic payroll coalition

Source: Nacha

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.

Providing a safe option for payroll, Direct Deposit and payroll cards 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, providing efficiencies for both the employer and the employee."

Electronic payroll provides 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. Employees also report that the payroll card provides increased convenience over paper check options, providing a way to receive their pay without having to go somewhere to cash a check. Payroll cards bring the benefits of electronic wage payment to employees without bank accounts who could not otherwise participate in Direct Deposit.

"Less time at the bank, 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."

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