How to Increase Direct Deposit Participation

Direct deposit is no longer the exception. It is how almost everyone gets paid. In PayrollOrg's 2025 "Getting Paid in America" survey, reported by Nacha, 92.7% of workers said their wages arrive by direct deposit. Only 3.3% still receive a paper check.

That changes the task for most employers. With adoption already this high, the work is not convincing your team that direct deposit is a good idea. It is helping the last few employees who have not signed up get there.

Those employees usually have a specific reason for holding back, a habit, uncertainty about automatic transfers, or no bank account. Each one is straightforward to address. This guide covers the benefits worth sharing with employees and the practical steps that move participation.

Why Direct Deposit Participation Matters

Even a few paper-check holdouts keep your entire print-and-deliver process alive. You still print checks, stuff envelopes, track delivery, and absorb the cost for a handful of people.

Getting everyone onto direct deposit is what lets you retire that process for good. To see what those last paper checks really cost, read The Hidden Cost of Paper Payroll.

The Benefits to Put in Front of Employees

Frame these as talking points your team can reuse with hesitant employees.

Faster, On-Time Access to Pay

Funds land in the account on payday, every time. There is no check to deposit and no waiting for it to clear. Employees get paid on schedule even when they are out sick or on vacation.

Safer Than a Paper Check

This is where the data overturns a common myth. The Association for Financial Professionals (AFP) found that checks were the payment method most targeted by fraud, with 58% of organizations hit by check fraud in 2025.

Mail theft has made the problem worse. A paper check can be lost, stolen, or altered in transit. A direct deposit cannot be pulled from a mailbox.

Less Hassle, Plus an Easy Way to Save

There are no bank lines and no check-cashing fees. And with Split Deposit, employees can automatically route part of each paycheck straight into savings. Even $10 a week adds up to $520 in a year, without any effort.

How to Boost Enrollment

A sign-up event helps, but the biggest gains come from making direct deposit the path of least resistance.

Make It the Default at Onboarding

Build direct deposit into your standard new-hire steps. When it is simply how pay works here, most employees enroll without a second thought. Defaulting new hires in is the single most effective way to maintain high participation over time.

Simplify the Sign-Up

Collect routing and account information through a quick digital form. Tell employees exactly where to find those numbers, at the bottom of a check, or inside their banking app under account details. The less guesswork involved, the faster people complete it.

Run a Direct Deposit Drive

Set aside a day or two and help employees enroll on the spot. Bring a laptop or tablet, answer questions, and walk anyone who is unsure through the form. A short, friendly push clears most of the remaining holdouts in one sitting.

Help Employees Without a Bank Account

A missing account is the most common genuine holdout, and it is solvable. It is also rare and getting rarer. The Federal Deposit Insurance Corporation's (FDIC) 2023 national survey found that only 4.2% of U.S. households were unbanked, a record low, meaning roughly 96% are banked.

For the few employees without an account, point them to low-cost or no minimum-balance options. Many can be opened online in minutes, which turns a perceived dead end into a quick task.

A Note on Requiring Direct Deposit

Can you simply require it? It depends on your state. Some states prohibit mandating direct deposit, and others require you to offer a paper alternative.

The safest approach is to keep enrollment voluntary and lead with the benefits.

Making the Switch Simple

Trivantus helps clients move to electronic pay submission and direct deposit smoothly, from setup through employee rollout. The result is less paper, lower cost, and a payday your team can count on.