Why would my organization be interested in participating?

Participation in ACH Origination can reduce the costs associated with manually processing debits and credits. The cost to create and distribute payroll checks ranges from $ .75 to $2.00 per check. If you factor in the hassle of employees trying to get a deposit in on time, second- or third-shift employees, and absent or sick employees, manual payroll distribution can negatively impact your organization. The cost of Direct Deposit of payroll using ACH Origination is only a fraction of the cost of manual processing.

Similarly, the cost of manually creating invoices, mailing them to customers, providing a return envelope, waiting for checks to be mailed, and creating deposits averages $1.00 to $3.00 nationally. Some organizations have begun utilizing a "lockbox" operation where payments are mailed to a P.O. Box and processed by a third party, then a single check is sent to the organization. However, lockbox processing still does not get money to your account and can be more expensive than ACH due to paper and mailing costs. Direct Payment using ACH Origination is the most cost-effective way of processing any type of receivable that is currently handled manually.