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LARGEST PAYDAY IN U.S. HISTORY PREDICTED ON DEC. 31 INCOME RECIPIENTS TAKE IN 100 MILLION PAYMENTS

 HERNDON, Va., Dec. 29 /PRNewswire/ -- More than 100 million private- sector and U.S. government workers, retirees, and recipients of Social Security and other government benefit payments will all get paid on the last day of the year, making Dec. 31 the largest payday in the history of the U.S. payments systems, according to the National Automated Clearing House Association (NACHA). The heavy volume of payments should encourage millions of U.S. workers, retirees, and others to sign up for Direct Deposit.
 More than $75 billion in salary and other payments will be distributed on the last day of 1992. Most people paid weekly, bi- monthly and monthly, as well as those receiving year-end bonuses will receive payments on Dec. 31, since the traditional Friday payday falls on the New Year's Holiday. Social Security payments, which are normally distributed between the first and third day of each month, will be value dated on Dec. 31 because the first three days of January fall over the New Year's holiday weekend.
 "This change in the payments cycle will affect virtually all recipients of income payments in the United States," said Elliott McEntee, president of NACHA. "It will be the largest payday in our history."
 "For individuals who are paid by direct deposit, Dec. 31 will be a routine payday, despite the fact that the day is one of the busiest times of the year for financial institutions," said Robert D. Edwards, chairman of NACHA's Marketing Committee and senior vice president of PNC Corporate Services in Pittsburgh.
 Check Recipients Lose Out
 Consumers who receive income payments by check will be inconvenienced on Dec. 31. These people will face extra hassles cashing or depositing their checks, clarifying the benefits of Direct Deposit. Additionally, the large number of people on vacation over the holiday will either need to make special arrangements for their checks or they simply won't have access to their money until Monday, Jan. 4, 1993. People who use Direct Deposit, however, will be able to access their money via ATM machines as well as pay mortgages, credit card, and other bills.
 Since 1988, Direct Deposit participation has grown from less than 12 percent to over 30 percent of the workforce, and the number of companies using the ACH Network has grown from less than 40,000 to over 150,000. The federal government is the largest user of Direct Deposit, with more than 80 percent of all government civilian and military personnel using the automated payment service. In addition, 54 percent of all Social Security recipients receive their payments via Direct Deposit.
 NACHA is a non-profit trade association which forms the cooperative foundation for the Automated Clearing House (ACH) payments system through a network of 40 ACH associations nationwide. Transactions processed through the network include preauthorized bill payments and electronic data interchange (EDI) transactions, as well as payments for direct deposit of payroll, dividends, pensions and annuities. The ACH payments mechanism currently processes over 1.7 billion transactions per year through a low-cost, efficient funds transfer for the more than 14,000 financial institution members, serving over 150,000 corporations and millions of consumers.
 -0- 12/29/92
 /CONTACT: Stephen Lewis, 703-742-9190; or Steven Bruce, 212-371-5999, both for National Automated Clearing House Association/


CO: National Automated Clearing House Association ST: Virginia IN: FIN SU:

LR-OS -- NY003 -- 0333 12/29/92 12:34 EST
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Publication:PR Newswire
Date:Dec 29, 1992
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