Direct deposit service


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Direct deposit service

A service that electronically transfers all or part of any recurring payment—including dividends, paychecks, pensions, and Social Security payments—directly to a shareholder's 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.
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References in periodicals archive ?
Many banks in Alaska offer direct deposit services that can help business owners lessen the cost of producing, distributing, and reconciling checks for each payroll.
Payroll processing and direct deposit services are also popular within the small business sector.
The state said it discovered during routine examinations the six check cashers marketed direct deposit services with out-of-state banks offering "limited purpose" accounts.
As Federal Reserve Chairman (formerly Fed Governor) Ben Bernanke said in 2004, mainstream financial institutions that provide remittance services have a potentially effective method of attracting unbanked immigrants to other services, such as direct deposit services, savings accounts and consumer loans.
An increasing number of Alaska businesses are taking advantage of ACH and direct deposit services, according to Business Financial Services Manager Stephanie Haydn.