URBAN ECONOMIC POLICY COMMITTEE

URGING SUPPORT FOR DIRECT DEPOSIT AND DIRECT PAYMENT METHODS

WHEREAS, the Federal Reserve System, the Central Bank of the United States, was founded by Congress in 1913 to provide a safer, more flexible and stable monetary and financial system; and

WHEREAS, as part of its overall responsibilities, the Federal Reserve is undertaking a national campaign to encourage consumers, businesses and units of governments and others to use direct deposits and direct payments; and

WHEREAS, customers, companies and government agencies can save time and have better access to their money through the use of direct deposit and direct payment; and

WHEREAS, the Electronic Payments Association estimates that companies can save up to $1.25 per payment by using direct payment, and customers who write 12 to 20 checks a month can save up to $80.00 a year in stamps alone by using direct payment; and

WHEREAS, the nation’s payments system costs more than that of most other industrialized nations, and direct deposit and direct payment methods that allow consumers and businesses to get paid, and to pay their bills automatically, can reduce the nation’s costs considerably; and

WHEREAS, the Direct Deposit and Direct Payment Coalition (composed of The Federal Reserve, the Electronic Payments Association and Regional Automated Clearing House Associations) seeks to promote the benefits of direct deposit and direct payment methods to; (1) improve the efficiency of the nation’s payments system; (2) reduce costs; (3) reduce payment risk; and (4) provide privacy and security to users;

NOW, THEREFORE, BE IT RESOLVED that The United States Conference of Mayors urges cities, counties, states, businesses, consumers, organizations and others to use direct deposit and direct payment methods.