August 31, 2001

Wow, printing paychecks must cost companies a fortune. Either that, or banks must give big incentives for companies to use their payment systems and promote direct deposit. Next week is National Payroll Week, when we'll all be asked by our employers to visit DirectDeposit.org to learn about the joys of not having to pick up a check. (The domain name DirectDeposit.org is registered to New York Clearing House.)

Nothing against payroll, of course! Every department deserves a week to celebrate their trade, and be recognized for their contributions. Where would we be without payroll?

comments...

Lilly, August 31, 2001 1:03 AM:

Even when I have direct deposit, I still always get a printed check that is voided. So it's not the printing of the checks that saves the company money -- unless redeemable checks perhaps cost more to produce for some reason.

DRV, September 2, 2001 10:20 AM:

Yes, you're right about the redeemable checks costing more. The "voided" check can be printed on plain paper. Real checks have several imbedded security features.

Jerry Kindall, September 3, 2001 12:04 AM:

The problem with that theory is that the direct-deposit vouchers are generally identical to a real check, right down to the heat-sensitive printing ADP uses.



Errors in any highly automated system tend to be very expensive to correct. I'd imagine this is the main reason that banks push for direct deposit. It also probably cuts the actual transaction cost at least in half and improves customer satisfaction.

DRV, September 3, 2001 9:49 AM:

I have direct deposit, naturally, but I don't even get a "voided" check. I just get a "statement of earnings and deductions" telling me that a certain amount has been deposited. The statement is snail-mailed on plain paper.



So maybe there's a progression here. I know of some older people who still cash their checks to make sure the money is real. You and I trust checks, so we're given "voided" checks for a while to wean us to trusting direct deposit. As the progression accelerates, "voided" checks disappear for paper statements. Then paper statements will disappear for e-statements.

Dan, September 4, 2001 12:45 AM:

I'm actually having to try to *convince* my employer to switch to a Direct Deposit system. I have serious issues with my seriously shitty bank (Bank of America, if you were wondering) and holding checks so, on paydays, I walk a block to the bank where the check is drawn, cash it, and deposit the cash to a LIVE teller to ensure that my money is there when I need it to be. I ended up paying $100 extra in bounced check and late fees last month after BoA randomly decided to put a week-long hold on a paycheck.



Were it feasible, I'd simply rely on First National Bank of Jar in My Bedroom. Utility companies apparently don't want you to send cash payments, though.

DRV, September 4, 2001 2:59 AM:

First National Bank of Jar. That's good.



I have some friends who do everything on a cash basis. They don't even have bank accounts. And these are home owners! They pay their utility bills in cash. There are various locations that will take the cash and pay the bill. The Senior Center in Westerly, Rhode Island, for example, will do that. My friends like to do it that way because then they have a receipt. If they put it in the mail, then no receipt for 30 days!

DRV, September 4, 2001 3:02 AM:

And besides, you can't mail cash.