{"id":3005,"date":"2017-05-15T21:50:26","date_gmt":"2017-05-15T21:50:26","guid":{"rendered":"https:\/\/www.dailypay.com\/2017\/05\/15\/cost-of-paper-checks\/"},"modified":"2022-01-25T15:03:15","modified_gmt":"2022-01-25T20:03:15","slug":"cost-of-paper-checks","status":"publish","type":"post","link":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/","title":{"rendered":"How Much Are Paper Checks Costing Your Business?"},"content":{"rendered":"<p>Why send a handwritten letter when you can shoot a quick e-mail or text message? That analogy may best describe the difference of processing paper checks versus direct deposit. More than being an outdated and time-consuming practice, writing paper check is a more costly process for many businesses.<\/p>\n<p><a href=\"https:\/\/www.shrm.org\/resourcesandtools\/hr-topics\/compensation\/pages\/directdeposit.aspx\"><span style=\"font-weight: 400;\">NACHA<\/span><\/a><span style=\"font-weight: 400;\">, a trade association of electronic payment vendors, conducted a survey among U.S. companies with less than $20 million in annual revenue that use a business checking account for the majority of their business. According to NACHA:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Of the 52% of organizations that use direct deposit for payroll, only 30% have 100% employee participation.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It costs a business up to $2 to cut and process a hard-copy check versus 35 cents or less for direct deposits.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A business with 100 employees would save at least $7,000 by using direct deposit over paper checks.<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.wsj.com\/articles\/u-s-companies-cling-to-writing-paper-checks-1394494772?tesla=y\"><span style=\"font-weight: 400;\">Bank of America <\/span><\/a><span style=\"font-weight: 400;\">offers a more robust figure for the true cost of paper checks. In fact, they figure the price is more like $4 to upwards of $20, based on the price of the check and shipping, plus the time employees spend writing, mailing, collecting and reconciling the check.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Paper checks are less secure than direct deposit<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Employees may be at higher risk for fraudulent activity if they rely on paper checks, too. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to a study by <\/span><a href=\"https:\/\/www.vbsfcu.org\/why-direct-deposit\/\"><span style=\"font-weight: 400;\">Tinucci &amp; Associates for NACHA<\/span><\/a><span style=\"font-weight: 400;\">, \u201cWhile the banking system itself is secure, the sheer number of times a check must be passed from hand to hand while it is being processed means there is less security available.\u201d<\/span><\/p>\n<p>Checks are generally safe, but direct deposit eliminates the amount of times funds are based back and forth, which makes the process more secure.<\/p>\n<p>Safety and cost aren\u2019t always at the forefront of employee concerns. How can employer relay the importance of direct deposit, effectively?<\/p>\n<h2><span style=\"font-weight: 400; font-family: proxima;\">What can effectively encourage employees to enroll in direct deposit? <\/span><\/h2>\n<p><span style=\"font-weight: 400; font-family: proxima;\">Payroll direct deposit is valuable and cost-effective for your organization. How can you encourage non-participating employees to get on board? Here are a few solutions:<\/span><\/p>\n<ol>\n<li><span style=\"font-family: proxima;\"><strong>Promote the direct deposit<\/strong><span style=\"font-weight: 400;\">. If you haven\u2019t already, attach enrollment forms to the employee&#8217;s paycheck. Remind your employees of the ease and benefit of skipping a trip to the bank. <\/span><\/span><\/li>\n<\/ol>\n<ol start=\"2\">\n<li><span style=\"font-family: proxima;\"><strong>Educate your employees.<\/strong><span style=\"font-weight: 400;\"> It could be that your employees don\u2019t currently have a bank account. Sometimes banks charge a minimum before allowing someone to open an account, and for someone living paycheck to paycheck, it could be difficult to meet the minimums. Some organizations host a \u201cbank fair\u201d where banks are invited to your workplace to obtain new customers. Many offer a promotion that day, such as a \u00a0&#8220;free checking&#8221; \u00a0deal to incentivize employees to sign up. <\/span><\/span><\/li>\n<\/ol>\n<ol start=\"3\">\n<li><span style=\"font-family: proxima;\"><strong>Offer an incentive<\/strong><span style=\"font-weight: 400;\">. DailyPay is a service that allows your employees to get paid as often as they would like. It\u2019s non-disruptive to a payroll system, and an added value to an employee. The catch is, DailyPay only services those who have direct deposit. When it comes down to deciding between sticking to paper checks or having the freedom to capitalize on the earnings you have already made, direct deposit becomes more attractive. We have seen an uptick in direct deposit enrollment from organizations offering DailyPay as a service. <\/span><\/span><\/li>\n<\/ol>\n<p><span style=\"font-family: proxima;\"><span style=\"font-weight: 400;\">Learn more about <\/span><a href=\"http:\/\/www.dailyPay.com\/demo\"><span style=\"font-weight: 400;\">DailyPay <\/span><\/a><span style=\"font-weight: 400;\"><span style=\"font-family: proxima;\">and how it can improve your bottom line by incentivizing your employees to sign up for direct deposit.<\/span> <\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why send a handwritten letter when you can shoot a quick e-mail or text message? That analogy may best describe the difference of processing paper checks versus direct deposit. More than being an outdated and time-consuming practice, writing paper check is a more costly process for many businesses. NACHA, a trade association of electronic payment<a class=\"read-more\" href=\"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/\">Read More<\/a><\/p>\n","protected":false},"author":32,"featured_media":3006,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[147],"tags":[614,60,287],"class_list":["post-3005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-operations","tag-payroll","tag-payroll-costs"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How Much Are Paper Checks Costing Your Business? - DailyPay<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Much Are Paper Checks Costing Your Business?\" \/>\n<meta property=\"og:description\" content=\"Why send a handwritten letter when you can shoot a quick e-mail or text message? That analogy may best describe the difference of processing paper checks versus direct deposit. More than being an outdated and time-consuming practice, writing paper check is a more costly process for many businesses. NACHA, a trade association of electronic paymentRead More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/\" \/>\n<meta property=\"og:site_name\" content=\"DailyPay\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/dailypay\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/trydailypay\/\" \/>\n<meta property=\"article:published_time\" content=\"2017-05-15T21:50:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-25T20:03:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.dailypay.com\/wp-content\/uploads\/Article-4_Stock-Photo.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"DailyPay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@dailypay\" \/>\n<meta name=\"twitter:site\" content=\"@dailypay\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"DailyPay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"How Much Are Paper Checks Costing Your Business? - DailyPay","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/","og_locale":"en_US","og_type":"article","og_title":"How Much Are Paper Checks Costing Your Business?","og_description":"Why send a handwritten letter when you can shoot a quick e-mail or text message? That analogy may best describe the difference of processing paper checks versus direct deposit. More than being an outdated and time-consuming practice, writing paper check is a more costly process for many businesses. NACHA, a trade association of electronic paymentRead More","og_url":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/","og_site_name":"DailyPay","article_publisher":"https:\/\/www.facebook.com\/dailypay","article_author":"https:\/\/www.facebook.com\/trydailypay\/","article_published_time":"2017-05-15T21:50:26+00:00","article_modified_time":"2022-01-25T20:03:15+00:00","og_image":[{"width":1920,"height":1280,"url":"https:\/\/www.dailypay.com\/wp-content\/uploads\/Article-4_Stock-Photo.jpg","type":"image\/jpeg"}],"author":"DailyPay","twitter_card":"summary_large_image","twitter_creator":"@dailypay","twitter_site":"@dailypay","twitter_misc":{"Written by":"DailyPay","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/#article","isPartOf":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/"},"author":{"name":"DailyPay","@id":"https:\/\/www.dailypay.com\/#\/schema\/person\/0dc5e72435b747402bdc50b62513acd9"},"headline":"How Much Are Paper Checks Costing Your Business?","datePublished":"2017-05-15T21:50:26+00:00","dateModified":"2022-01-25T20:03:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/"},"wordCount":559,"commentCount":0,"publisher":{"@id":"https:\/\/www.dailypay.com\/#organization"},"image":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/Article-4_Stock-Photo.jpg","keywords":["Operations","Payroll","payroll costs"],"articleSection":["Blog"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/","url":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/","name":"How Much Are Paper Checks Costing Your Business? - DailyPay","isPartOf":{"@id":"https:\/\/www.dailypay.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/#primaryimage"},"image":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/Article-4_Stock-Photo.jpg","datePublished":"2017-05-15T21:50:26+00:00","dateModified":"2022-01-25T20:03:15+00:00","breadcrumb":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/#primaryimage","url":"https:\/\/www.dailypay.com\/wp-content\/uploads\/Article-4_Stock-Photo.jpg","contentUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/Article-4_Stock-Photo.jpg","width":1920,"height":1280,"caption":"A blue computer mouse, a coffee cup, and pen rest on documents, including financial paperwork and a handwritten note, beside a laptop."},{"@type":"BreadcrumbList","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/cost-of-paper-checks\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Resource Center","item":"https:\/\/www.dailypay.com\/resource-center\/"},{"@type":"ListItem","position":2,"name":"Blog","item":"https:\/\/www.dailypay.com\/resource-center\/blog\/"},{"@type":"ListItem","position":3,"name":"How Much Are Paper Checks Costing Your Business?"}]},{"@type":"WebSite","@id":"https:\/\/www.dailypay.com\/#website","url":"https:\/\/www.dailypay.com\/","name":"DailyPay","description":"Earned Wage Access Provider - DailyPay","publisher":{"@id":"https:\/\/www.dailypay.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.dailypay.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.dailypay.com\/#organization","name":"DailyPay","url":"https:\/\/www.dailypay.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.dailypay.com\/#\/schema\/logo\/image\/","url":"https:\/\/www.dailypay.com\/wp-content\/uploads\/dailypay-logo.svg","contentUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/dailypay-logo.svg","width":157,"height":39,"caption":"DailyPay"},"image":{"@id":"https:\/\/www.dailypay.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/dailypay","https:\/\/x.com\/dailypay","https:\/\/www.instagram.com\/trydailypay\/","https:\/\/www.linkedin.com\/company\/dailypay-inc\/","https:\/\/www.youtube.com\/channel\/UCOHcuqx2v4Yqpm1bdt1AMWA"]},{"@type":"Person","@id":"https:\/\/www.dailypay.com\/#\/schema\/person\/0dc5e72435b747402bdc50b62513acd9","name":"DailyPay","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/e42f21a99897a3d3491b8b93da6117f50707d53af06c27b3db445d48b6477a8a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/e42f21a99897a3d3491b8b93da6117f50707d53af06c27b3db445d48b6477a8a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/e42f21a99897a3d3491b8b93da6117f50707d53af06c27b3db445d48b6477a8a?s=96&d=mm&r=g","caption":"DailyPay"},"description":"DailyPay, the leading provider of the daily pay benefit \u2014 a benefit offered through employers that allow employees to receive instant access to their earned income, works across a wide range of industries, including quick service restaurants, hospitality, retail, healthcare and other services. One in six Americans now has access to DailyPay through our trusted payroll service partners, including ADP, Paycor, SmartLinx, Netspend and other HR and payroll technology providers, who offer the daily pay product to their customers. With DailyPay, employees can pay bills on time and avoid late fees, helping them to reach their financial goals. Companies have reported that DailyPay increases employee engagement and retention and helps to support recruitment. DailyPay is backed by leading venture capital firms and world-class strategic investors. The company is headquartered in New York.","sameAs":["https:\/\/www.facebook.com\/trydailypay\/","https:\/\/www.linkedin.com\/company\/dailypay-inc\/","https:\/\/x.com\/dailypay"],"url":"https:\/\/www.dailypay.com\/author\/dailypay\/"}]}},"_links":{"self":[{"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/posts\/3005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/comments?post=3005"}],"version-history":[{"count":0,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/posts\/3005\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/media\/3006"}],"wp:attachment":[{"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/media?parent=3005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/categories?post=3005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dailypay.com\/wp-json\/wp\/v2\/tags?post=3005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}