Two thirds of US small businesses do not offer
Direct Deposits to their employees, believing they are too small to
justify the perceived expensive costs associated with the payment

According to a study by US Electronic Payments
Association NACHA and banking and payments technology provider FIS’
research division eCom Advisors, over 3 million companies are still
issuing payroll by cheques and 18 million employees still do not
have the option to be paid electronically.

“Small businesses of all sizes, including
those with as few as one employee, can take advantage of the
benefits of Direct Deposit,” said Regina Lee, president of small
business services and major account services for ADP, a provider of
outsourced human resources, payroll, and benefits

“We offer Direct Deposit as a core component
of our payroll packages. Today, Direct Deposit makes sense for a
far wider range of small businesses.”

The research shows more than 80% of small
businesses that outsource their payroll to a third-party processor
offer Direct Deposit. In contrast, only 40% of small companies that
manage their payroll internally offer the service to their

Lack of communication is cited as another
major reason why Direct Debit falls short of broader penetration.
The study reveals 50% of non-users have not been contacted at all
about the service and one third of non-users claim they would
consider using Direct Deposit but do not currently use it because
they haven’t been approached.

“Small business is a core engine driving our
economy, and this becomes all the more powerful when its leaders
can focus on what makes their business move,” said president and
CEO of NACHA Janet O Estep.

“They know their employees benefit from Direct
Deposit and simply need to see how this translates to a better
bottom line through increased productivity, cost reduction and a
greater ability to focus on their core line of business.”

Small businesses that are B2B focused or wholesale companies in
professional services, healthcare and financial services trades are
most likely to convert to Direct Deposit, according to the