The cost is why most companies in the UK have gone that way. I also think that employees that get paid in this way will have fared better in the Katrina disaster because any monies owing them can be deposited straight into their account those that are paid by cheque or cash surely will have great problems getting their money.
Hopefully all the computers that do that survived! Just think of everything that is gone forever...
Regarding Katrina and direct deposit, they would still have problems getting their money. Banks close if there is no electricity. It would solve some problems but not all the disaster problems.
I do like direct deposit, the money gets there at midnight, I can transfer electronically between accounts. It helps and saves me a trip to the bank. The bank is open only when I have to work, most of the time.