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INTRODUCTION Federal regulators and federal courts made important decisions regarding a number of rapidly evolving deposit and payment products and payment systems in 2006. This part of the Consumer Law [...]

Byline: Will Wade The Federal Reserve Board is planning to offer same-day settlement for some automated clearing house payments, starting Aug. 2. On Monday, The Fed announced a set of [...]

The direct deposit of payroll could become mandatory in several US states. Colorado has already introduced legislation that allows corporations to mandate electronic deposit, while Texas is looking to require direct deposit. Electronic payrolls are financially beneficial to companies as they eliminate the professing and issuance of payroll checks. A barrier to the implementation of the mandatory direct deposit of payrolls are employees without bank accounts. These employees can be provided automated teller machine cards through the company's reservoir bank account from which debits against each employee account can be authorized., State legislation permitting corporations to mandate direct deposit of payroll could save employers money and eliminate payroll checks. Many companies already offer a direct deposit option to employees, but even [...]

The IRS announced (IR-2006-85) that it is going to allow taxpayers who use direct deposit to divide their refunds in up to three financial accounts. A new form, Form 8888, [...]

Community banks can benefit from a new campaign aimed at motivating people to receive their federal benefits by direct deposit, said Alvina McHale of the Department of the Treasury. Approximately [...]

A bill specifically authorizing the payment of employees through direct electronic bank deposit was approved by the Arkansas General Assembly and has become law as Act 925. The legislation, sponsored [...]

The states of New York and Massachusetts are preparing draft legislation which would require that most state payments use electronic transactions rather than paper checks. The cost of issuing a paper check is about 40 cents, while the cost of an electronic transaction costs pennies. New York could save up to $50 mil in annual operating costs by shifting to electronic payments., The Massachusetts and New York legislatures each have begun drafting measures that would require most of their government payments to be made electronically, sources said. The measures, which could be [...]

Direct Deposit Found to Be Permitted Nationwide The National Automated Clearing House Association and the American Payroll Association have issued a study of state regulations on direct deposit. The study, [...]