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OLDER AMERICANS CAN BENEFIT BY USING ELECTRONIC PAYMENT SERVICES

 OLDER AMERICANS CAN BENEFIT BY USING ELECTRONIC PAYMENT SERVICES
 CHARLOTTE, N.C., April 28 /PRNewswire/ -- Americans over the age of 50 now control 70 percent of the net worth in the United States. They buy 43 percent of all new domestic cars and they have a collective annual income of $800 billion.
 Many of these seniors place a high value on the safety of their funds and, as a consequence, they are increasingly choosing electronic payment services, such as direct deposit of their social security, pension or dividend payments. All of these payments are sent via the Automated Clearing House (ACH) network, America's largest electronic payments network.
 Guiding this network at the national level is the National Automated Clearing House Association (NACHA). The North Carolina ACH (NorCACHA), a non-profit corporation totally funded by participating members, is a member of NACHA, thus NorCACHA provides services that are national as well as local in scope. Virtually all North Carolina banks, credit unions and savings-and-loan associations are members of NorCACHA.
 Walter J. Woytisek, Executive Director for NorCACHA, believes that older Americans and retirees are missing out on a number of direct deposit benefits if they're not using electronic payment services. "With direct deposit, there is no worry about having checks stolen, lost or damaged," observes Woytisek. "But the benefits don't stop there."
 "Older Americans don't have to worry about having their payments deposited if they are on vacation or away from home during parts of the year. Direct deposit also eliminates stress caused when checks are delayed in the mail. With direct deposit, the money is guaranteed to be in the bank."
 Woytisek continues, "Most non-salary payments (dividends, pensions and annuities) are sent through the mail and must then be deposited and credited to the consumer's account. Consumers can lose as much as 10 days interest on these payments. However, if they were sent electronically, the payments would be credited to the account on the date of payment."
 Direct deposit involves programs through which checks are electronically credited to individual bank accounts via the Automated Clearing House network. Employees complete a form authorizing a company or other payor to make deposits into their checking, savings or investment accounts. When the payment is due, the payor supplies its financial institution with the payment information -- via magnetic tape, data link, diskette, personal computer input or paper listing. The financial institution then sends the transaction to the ACH Processor for distribution to the recipient's respective financial institution. The recipient's financial institution then credits the recipient's account for the payment amount. Additional information regarding electronic payment services is available through NorCACHA's Charlotte office (704-545-1104).
 -0- 4/28/92 R /CONTACT: Walter J. Woytisek,


North Carolina Automated Clearing House Association, Inc., 704-545-1104/ CO: North Carolina Automated Clearing House Association, Inc. ST: North Carolina IN: FIN SU: PDT

DF -- CH003 -- 3713 04/28/92 11:14 EDT
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Publication:PR Newswire
Date:Apr 28, 1992
Words:478
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