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MAMMOTH PAYDAY PREDICTED ON DEC. 30;OVER 50 MILLION PAYMENTS EXPECTED

 HERNDON, Va., Dec. 30 /PRNewswire/ -- More than 50 million private- sector and U.S. Government workers, retirees and recipients of other government benefit payments will all get paid on Dec. 30, making it one of the largest paydays in history, according to The National Automated Clearing House Association (NACHA).
 "Since the New Year's Holiday is celebrated on a Friday and is the end of a work week and month, we expect employers will be paying their employees on Thursday, Dec. 30," said Elliott McEntee, president of NACHA. "As a result, we expect it will be one of the largest paydays in the history of the payments system."
 Over 10 million government payments will be made encompassing The Armed Services, VA Benefits, and government employees, and over 80% will receive those payments via Direct Deposit.
 Private sector companies are expected to make nearly 40 million regular payroll payments, and year end bonuses are normally paid at this time as well.
 Add the number of monthly and year-end corporate payments that must be made, and the result is a substantial volume surge in the payments system.
 "The last work day in December is traditionally one of the busiest days of the year for financial institutions. The inevitable delays in cashing or depositing checks will convince those still not enjoying the benefits of Direct Deposit that the old fashioned method of manual banking does not make sense anymore." McEntee said.
 "As the popularity of Direct Deposit grows, and it's now being used by over 35% of the workforce, we envision consumers becoming more and more comfortable expanding their use of other Direct Deposit products and direct payments as well," McEntee concluded.
 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 ACH network include direct and pre-authorized bill payments, electronic data interchange (EDI) transactions, and payments for direct deposit of payroll, dividends and annuities. The ACH payments mechanism currently processes over two billion transactions a year through low cost, efficient funds transfer for the more than 14,000 financial institutions members, which serve over 160,000 corporations and millions of consumers.
 -0- 12/30/93
 /CONTACT: Karen Lyter of NACHA, 703-742-9190; or Steven Bruce or Stephanie Farmer of Abernathy/MacGregor/Scanlon, 212-371-5999/


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

JG -- NY005 -- 7977 12/30/93 09:00 EST
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Publication:PR Newswire
Date:Dec 30, 1993
Words:412
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