Dallas (PRWEB) May 7, 2010
Dallas-based SWACHA, one of the largest not-for-profit electronic payments associations in the country, announced today its goal of achieving 100 percent usage of direct deposit among Texans by this time next year. SWACHA’s declaration is part of its efforts to recognize the month of May as Direct Deposit and Direct Payment month. Direct Deposit and Direct Payment month is part of a national awareness campaign sponsored by NACHA, a national payments industry group, designed to promote the benefits of electronic payment options.
SWACHA plans to measure its results in 2011 by repeating a consumer survey of Texans it first fielded in 2009. The results of that survey indicated that 98 percent of respondents have a clear understanding of direct deposit; however, only 66 percent were using their employer’s direct deposit option. In addition to 100 percent usage of Direct Deposit, SWACHA has set the following goals for increased electronic payment adoption in 2011 including:
- 100 percent using their employer’s direct deposit option versus 66 percent in 2009 (34 percent increase).
- 60 percent putting some money into an account other than a checking account versus 30 percent in 2009 (50 percent increase).
- 68 percent of those putting more than 10 percent of each paycheck into an account other than a checking account versus 34 percent in 2009.
- 58 percent using a direct payment system versus 21 percent in 2009 (50 percent increase).
“We realize these goals are ambitious,” said Dennis Simmons, AAP, SWACHA president and CEO. “But once more consumers realize the benefits that direct deposit and direct payments can provide; I foresee overall adoption will increase dramatically. The fact that 98 percent of those surveyed understand the concept of direct deposit is very good news for our industry, however, we have some big strides to take in order to reach the level of adoption we hope to achieve.”
“Having an employer deposit your check directly into your bank account instead of issuing a paper check, and paying bills electronically versus the old fashioned method of writing a check, cuts down on the amount of paper used and helps our industry to be more ‘green,’” said Simmons. “The use of electronic payment systems is faster and more efficient for all parties involved. Money gets credited to your account faster with direct deposit and direct payment ensures your bills are paid on time.”
To achieve its goals and help Texans increase their use of electronic payment options, SWACHA plans to develop consumer education efforts that can be used by community banks, credit unions and other financial institutions across the state that are SWACHA members. Additionally, SWACHA plans to continue its existing education programs with added emphasis on direct deposit and direct payments throughout the coming year.
Direct deposit allows employees to have wages directly deposited into one or more bank accounts providing them with a simple and convenient way to save money. Direct payment is an option to pay bills electronically without using a computer. A bank account is directly linked to the companies that send bills. For more information, visit http://www.swacha.org.
About the Survey
SWACHA's online survey of 400 Texans statewide was conducted in April 2009 by Infosurv with a confidence interval of 95 percent and a corresponding margin of error of +/- 4.9 percent. Only those respondents who identified themselves as the person responsible for paying household bills were permitted to complete the survey.
SWACHA-The Electronic Payments Resource® is a not-for-profit Regional Payments Association of approximately 1,100 members across the Southwest. SWACHA is the resource of choice for financial institutions and corporations in the areas of education, training, payments system risks and knowledge about electronic payments. SWACHA membership provides advantages such as superior quality training and unique industry resource materials, access to the toll-free Payments AnswerlineTM, Risk Management programs, and representation at the national level in the development of ACH policies and rules. For more information, visit http://www.swacha.org.