Online Tool Helps Calculate Direct Deposit Savings

November 20, 2008 ( - How much could you save by converting payroll to direct deposit?

To help answer that question, the Electronic Payments Association has introduced a new online calculator.   The calculator was developed by NACHA’s Marketing Management Group (MMG) in consultation with Treasury Alliance.

Input, Averages

The “Direct Deposit Cost Calculator” uses a company’s input and industry averages to determine a “typical” or “average” cost of implementing or increasing Direct Deposit at the company. Companies input the following numbers into the calculator:

  • Total number of employees
  • Percentage of salaried employees
  • Current percentage of salaried on Direct Deposit
  • Target percentage of salaried on Direct Deposit
  • Current percentage of hourly on Direct Deposit
  • Target percentage of hourly on Direct Deposit

“Direct Deposit for payroll is simple, safe, smart and green for businesses and consumers,” said Lisa Monroe, Director of Electronic Payment Systems at Evangelical Christian Credit Union and the chairperson of MMG. “This interactive tool shows companies of all sizes – from five to 500,000 employees – how much they can save annually by converting payroll to Direct Deposit or how much they can save by increasing Direct Deposit participation. For instance, a company of 100 employees can save approximately $3,000 per year by converting entirely to Direct Deposit.”

Users can also download a spreadsheet version of the calculator that allows companies to replace the industry-averaged information with their own cost information to derive a calculation specific to their company. All data points on the calculator and spreadsheet are sourced on the site, which also contains a glossary of the various cost elements.

The calculator can be found at