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AMERICANS DUMPING CHECKS IN FAVOR OF ELECTRONIC PAYMENTS; CONFERENCE TO FOCUS ON FUTURE CONSUMER BANKING PRODUCTS

 AMERICANS DUMPING CHECKS IN FAVOR OF ELECTRONIC PAYMENTS;
 CONFERENCE TO FOCUS ON FUTURE CONSUMER BANKING PRODUCTS
 HERNDON, Va., March 30 /PRNewswire/ -- Over the last five years consumers have more than doubled their usage of electronic payments, according to the National Automated Clearing House Association (NACHA).
 Studies by NACHA, government agencies and other participants in the payment system now show:
 -- More than 43 percent of all Americans participate in an automatic bill payment program for one or more recurring expenses like utilities, cable or life insurance premiums. In 1986 that number was about 20 percent.
 -- More than 25 percent of American workers now receive their pay via direct deposit, an increase of 110 percent since 1989. That translates into more than 27 million workers now getting paid via direct deposit.
 -- In 1990 there were more than 1.5 billion payments worth $6 trillion. The number of electronic payments has doubled since 1986. Early indications are that growth continued in 1991 and should continue well into the next century.
 "In search of ways to free up more time and cut down on the costs of sending and receiving financial transactions, American consumers are now embracing electronic payment products that allow them to pay bills automatically with their phones, buy groceries without cash or checks, and electronically deposit payroll, dividend and pension payments without making a special trip to their financial institution," said Elliott C. McEntee, NACHA's president and CEO.
 NACHA, the industry group responsible for the nation's largest electronic payments network, will be featuring the most modern and efficient payments products to hit the market at its Annual Conference, NACHA 92, held April 12-15 at the Atlanta Marriott Marquis. In addition to explaining how today's home banking and other products will affect consumers, sessions at NACHA 92 will analyze future products.
 Banking Into the Next Century
 To show how it will meet a growing demand for time-efficient banking services, the financial services industry will be discussing its most innovative products and services at NACHA 92. The topics discussed at the Atlanta conference will show more than 1,000 attendees what banking will look like in the 21st century:
 -- Submitting health care/insurance claims and payments electronically
 -- Using plastic point of sale cards instead of checks to pay for groceries and other merchandise
 -- Using electronic payments for consumer stock purchases
 After a recent Federal Communications Commission approval regarding interactive video data services, products such as "TV Answer" could soon enable consumers to order and pay for pizzas with the touch of a TV remote control button. Taking a different approach to home banking, Ohio-based Huntington Bancshares, Inc., will soon offer a banking product that will allow consumers to pay bills, transfer funds, open new accounts and even apply for loans using a telephone.
 Besides consumers, corporations and governments also are investing in modern payment products and services. Auto manufacturers and other companies are using electronic invoices and payments to order and pay for only the items they need, a move that eliminates inventory and costly accounting procedures.
 In addition, by 1994, state governments will be required to locate an absent parent whose children are entitled to support payments. Employers will be required to garnish wages and electronically send support payments for the child to the state. In turn, states will distribute the funds to the child support payment recipient. The potential volume for these payments is as high as nine million per month.
 Prominent Speakers at NACHA 92 Conference
 Speakers at NACHA 92 are industry-leading executives from government, corporations, financial institutions, consulting firms, and payment networks. This year's speakers include:
 -- William Taylor, chairman, Federal Deposit Insurance Corporation (Tuesday, April 14, luncheon speaker)
 -- Paul Volcker, former chairman, Federal Reserve Board of Governors (Tuesday, April 14, 8:45 a.m.)
 -- Frank Chew, vice president - treasurer, Delta Air Lines, Inc. (Monday, April 13, 9:00 a.m.)
 -- Jack Guynn, first vice president and COO, Federal Reserve Bank of Atlanta (Tuesday, April 14, 9:00 a.m.)
 -- Walter E. Leonard, executive vice president, Wachovia Corporation (Tuesday, April 14, 9:00 a.m.)
 For more information about NACHA 92 sessions and speakers, contact NACHA at 703-742-9190.
 NACHA is a trade association which forms the cooperative foundation for the automated clearing house (ACH) payments system through a network of 42 ACH associations nationwide. Transactions processed through the ACH 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 1.5 billion transactions a year through a low cost, efficient funds transfer for the more than 15,500 financial institution members, serving over 130,000 corporations and millions of consumers.
 -0- 3/30/92
 /CONTACT: Steven Bruce, 212-371-5999, for NACHA; or Stephen Lewis of NACHA, 703-742-9190/ CO: National Automated Clearing House Association ST: Virginia, Georgia IN: SU:


GK -- NY075 -- 2952 03/30/92 14:14 EST
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