Direct deposit

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Direct deposit

A method of payment which electronically credits your checking or savings account.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
"We continue to see growth in the use of ACH for direct deposit of payroll, vendor payments, and taxes as more businesses in Alaska take advantage of the convenience, security, and cost savings of these services," Dablemont says.
* Of small businesses with revenue between $ 10 million and $20 million, 18 percent still do not use direct deposit.
NACHA estimates using direct deposit saves companies between $2.87 and $3.15 per payment.
This puts the annual cost of issuing paper checks over direct deposit transfers at approximately $100 million.
Note, however, that even if you agree to direct deposit, your employer must provide you an itemized wage statement at each payday.
Taxpayers with outstanding Federal debts (such as delinquent child support and education loans) are ineligible for direct deposit of their refunds, as any refund is first applied against debt.
What does Social Security need to make your direct deposit change?
In addition to no overdraft fees, there are no minimum balance requirement, direct deposit requirement, debit card transaction requirement, monthly fee or per check charges.
Employers previously spending too much money for outside companies to process direct deposits for them are excited when they switch to ezACH direct deposit software from
They typically charge no monthly fees, have low penalties or none at all and offer FDIC insurance, direct deposit, electronic bill payment, debit cards, photo check deposit and national networks of fee-free ATMs.
The survey, called"Getting Paid In America," showed that ninety-seven percent of employees are paid by either direct deposit, payroll card or prepaid reloadable cards.
Increasingly, our customers are becoming strong users of online and mobile banking, online bill payment and direct deposit. Many of them seldom write paper cheques and choose to receive their statements electronically instead of in the mail.