Financial Update (July-September 2000)

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Direct Deposit and Direct Payment Week Promoted Nationwide

Direct Deposit

Proclamations and advertisements across the nation heralded Direct Deposit and Direct Payment Week, May 15–19. The national effort, spearheaded by the Direct Deposit and Direct Payment Coalition, was part of a national public awareness and education campaign to emphasize the importance of Direct Deposit and Direct Payment to the U.S. payments system.

In the Sixth Federal Reserve District, several governors and mayors signed proclamations for Direct Deposit and Direct Payment Week. These officials included Govs. Jeb Bush of Florida, Roy Barnes of Georgia, M.J. “Mike” Foster Jr. of Louisiana, Ronnie Musgrove of Mississippi and Don Sundquist of Tennessee and Mayors John Delaney of Jacksonville, Fla., Bill Purcell of Nashville, Tenn., and Marc Morial of New Orleans, La.

In addition, daily newspapers throughout the country carried advertisements promoting Direct Deposit and Direct Payment Week. The campaign also included airport advertising and a marketing kit for financial institutions, which included collateral and promotional materials aimed at consumers.

Direct Deposit and Direct Payment are electronic alternatives to checks. Direct Deposit allows consumers and businesses to receive payments automatically into their checking or savings accounts; Direct Payment allows for payments to be automatically debited from accounts. According to the National Automated Clearinghouse Association (NACHA), 55 percent of consumers receive one or more regularly scheduled payments using Direct Deposit. In 1999, nearly 2 billion payments were made by Direct Payment.

The Direct Deposit and Direct Payment Coalition is composed of the Federal Reserve, NACHA, the Electronic Payments Coalition and regional automated clearinghouse associations.

For additional information on the Direct Deposit and Direct Payment Coalition, visit www.directdeposit.org or www.directpayment.org.