Direct deposit


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Direct deposit

A method of payment which electronically credits your checking or savings account.

Direct Deposit

An electronic service in which a payment, especially but not limited to a paycheck, pension, or tax refund, is transferred immediately into the recipient's bank account. The direct deposit replaces a check for which the recipient would otherwise have to wait to arrive in the mail. A direct deposit service also allows the recipient to have access to his/her funds immediately without waiting on the holding period, which is required for many check deposits.

Direct deposit.

Direct deposit is the electronic transfer of money from a payer, such as your employer or a government agency, directly into a bank account you designate.

Direct deposit is faster and cheaper than sending a check and also more secure, which is why both payers and banks prefer this system. In fact, banks often provide free checking or other benefits if your paychecks are deposited directly.

References in periodicals archive ?
To start this test drive of this direct deposit software, visit http://www.
BenefitsDirect 'Direct Deposit Management' solution is widely accepted amongst many leading prepaid card providers as the 'de-facto' tool to attract and retain active direct deposit accountholders.
Of small businesses with revenue between $ 10 million and $20 million, 18 percent still do not use direct deposit.
Survey respondents listed other top reasons for opting into direct deposit as safety (35%), employer requirements (33%), clutter reduction (24%) and reduced environmental impact (21%).
NACHA estimates using direct deposit saves companies between $2.
Cities are also saving money by promoting direct deposit of municipal paychecks.
This puts the annual cost of issuing paper checks over direct deposit transfers at approximately $100 million.
The Direct Deposit Coalition, whose members include the Federal Reserve Bank, provides telling facts on the growing acceptance of direct deposit:
The Bureau of Labor and Industries interprets this to mean that it is unlawful to require the direct deposit of paychecks, and that employers must obtain each employee's voluntary consent in order to use direct deposits or electronic transfers for pay purposes.
25 for every paper check payment by converting to direct deposit payments.
The survey addressed why some businesses adopt direct deposit while others do not and why some employees whose businesses offer the service have started using it while others have not The electronic payments association conducted the survey in November 2010 of just under 2300 small business executives.
One of the simplest strategies for both retention and profitability is to secure the customer's direct deposit early in the relationship.