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Direct Deposit Cost Analysis

According to this comparison of the costs of paper checks vs. Direct Deposit payments, a company with 100 employees can save nearly $5,800 per year by switching to Direct Deposit, whereas a large business of 30,000 employees can realize over $1.6 million in annual cost savings.

Cost savings, along with the other benefits of electronic payments, are applicable to businesses of all sizes. Even if your business has fewer than 10 employees, you can realize substantial cost and time savings by switching to Direct Deposit. View our information especially for small businesses to learn more.

The figures shown here assume that Direct Deposit payroll stubs are printed and delivered in the same manner as a paycheck; however, secure electronic distribution of pay stubs can provide additional cost savings.

Please note: These figures are being revised to account for more recent cost data. Please check back for the updated version.

Small Business Cost Analysis: 100 Employees Paid Twice per Month

  Paper Check Direct Deposit Cost Savings
with Direct Deposit
Processing $0.865 $0.513 $0.352
Employee lost time
(per payment)		 $2.064 $0.000 $2.063
Total cost per payment $2.928 $0.513 $2.415
Total cost per month $585.60 $102.60 $483.00
Total cost per year $7,027.20 $1231.20 $5796.00

Source: NACHA/Tinucci Study, June 2003

Large Business Cost Analysis: 30,000 Employees Paid Twice per Month

  Paper Check Direct Deposit Cost Savings
with Direct Deposit
Processing $0.269 $0.082 $0.187
Employee lost time
(per payment)		 $2.083 $0.000 $2.083
Total cost per payment $2.352 $0.082 $2.270
Total cost per month $141,120 $4,920 $136,220
Total cost per year $1,693,440 $59,040 $1,634,640

Source: NACHA/Tinucci Study, June 2003

Did You Know

Businesses can save anywhere from $0.50 to $1.25 per payment by using Direct Deposit instead of checks.

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What People are Saying

"Direct Deposit cuts (our) cost from 21 cents per paycheck to 4.5 cents. With 7,600 - or just over half - of Stanford's employees on Direct Deposit, that means a savings to the university of $1,263 each payday."

- Stanford University,
Stanford, CA
(14,558 employees)