Direct Debit has smaller carbon footprint than cheques!

Taking "green" news to a different level, a new report has found that Direct Debit payments are "greener" than cheques, as the carbon emissions generated by paper cheques are 65 times greater than the paperless direct debit payment!

According to figures calculated by the Carbon Footprint Limited, the carbon footprint of an ongoing Direct Debit commitment is just 0.76g CO2 per process – a tiny figure in comparison to cheques which generate carbon emissions of 49.28g CO2 each time they are used.

The analysis, undertaken in conjunction with Bacs Payment Schemes Limited (Bacs), showed a comparison which looked at the overall impact of each payment method over the course of a year.

Assuming that each payment method was used once a month, for a year, Carbon Footprint Limited concluded that 12 cheques would generate 591.36g CO2 per annum, including set-up. In comparison, paper Direct Debits would create 73.36g CO2 (8x smaller) and paperless Direct Debit transactions would generate an even smaller 35.51g CO2 (16x smaller).

Michael Chambers, MD of Bacs, said: “Automated payments are now an integral part of everyday life in Great Britain and the evaluation conducted by Carbon Footprint Limited reinforces our belief that they are the best option for businesses that need to pay their regular business commitments on time, every time. Long acknowledged as a convenient and reliable way to pay, Direct Debit – and other automated payment methods like Bacs Direct Credit – can help businesses manage their finances more effectively and also reduce their overall impact on the environment.”