- Direct Payment is a simple, safe, smart, and green way to make recurring payments of all kinds, including loan and insurance payments, newspaper subscriptions, health club membership dues, utility and cable bills, investments, and charitable contributions.
- Some people may refer to Direct Payment as automatic bill payment, automatic debit, electronic bill payment, or direct debit.
- Direct Payment is reliable, accurate, on time, and confidential. Research shows that Direct Payment can help you save and invest more each month.
- Problems with Direct Payment are rare. If a problem does occur, it's easy to resolve - just call your billing company.
- Electronic payments are protected by federal regulations. Under the Federal Reserve Board's Regulation E, your financial institution is required to investigate any electronic payment that you believe to be in error, provided that you notify your financial institution.
- According to NACHA - The Electronic Payments Association, the number of Direct Payment increased by 3.6 percent to 3.4 billion payments in 2007.
- More than half of all U.S. households use Direct Payment for at least one recurring payment, and four out of five consumers who use it say they are very satisfied with it.
- Many companies offer incentives to encourage you to sign up with Direct Payment. These incentives can include lower interest rates on loans, vouchers for free service, sign-up gifts, and more. Contact your billing companies to find out if they offer any Direct Payment incentives.
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The average household receives approximately 19 bills and statements and makes approximately 7 payments in paper form monthly. The cost of postage and check stock can add up to more than $100 per year; these costs can be saved by making payments electronically, instead of by paper check
"I use Direct Payment for as many things as I possibly can. I utilize a credit card which I pay off every month, and my goal is to write one check each month and have everything else electronically debited from my account.
The reason I do this is simple - I'm a miser. And (without Direct Payment), you're paying for checks, you're buying envelopes, you're putting stamps on them, you're taking the time that it takes to go to the mailbox. If you have a busy schedule, that can be very annoying."
- Major Tracy Hunt,
Homestead, Fla.
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