Bank of America to handle North Carolina's electronic payments

Bank of America will process the electronic payments for the state of North Carolina for the next five years after winning a contract with the state treasurer and controller last week.

The contract covers payments like employee direct deposit paychecks, vendor payments and tax collections. Bank of America will charge less than half a penny per payment, a new rate which the state says will save taxpayers $1 million. The state budgeted about $21.7 million for e-commerce this year.

The state Department of Revenue is one of the biggest users of electronic payments. All state agencies, towns, colleges, schools and local governments will be able to access the system as well.

***Sign up for our morning email newsletter -- the Bank Watch Morning Report. Find out more here.***