It is estimated that 60 percent of employees in the United States are paid using direct deposit into their bank accounts. This high percentage continues to increase because of the cost and benefits to both employers and employees. The direct deposit arrangement has also been growing within government relationship with its vendors and suppliers. Almost all municipalities, states and federal agencies as well as various corporations employ direct deposit in payment of vendors and suppliers. State of Hawaii and its agencies continues to pay its vendors through the now almost outdated traditional paper check system.
Direct deposits have many benefits to government agencies as well as vendors and small businesses that require timely payments for goods and services procured. Resources. These benefits are below:
- Lower cost benefits-Paper check costs more money to print
- Reduction in the risk of check fraud and potentially lost/stolen checks
- Vendors can receive payments in a timely manner even when not in the office.
- Account transactions can be viewed online with ease.
- Time management-No need to spend time visiting bank or ATM to deposit checks
Most importantly, the reduced risk of fraud, stolen checks or lost checks to businesses make long-range benefits of direct deposit very significant. We are hoping that State of Hawaii and its agencies will soon join other states and municipalities in paying their vendors through direct deposit instead of the traditional paper check system that is expensive and costs the state more money. Resources
Written By: Anthony Obiako, Reliable Investments LLC
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