| Q: |
What is Direct Deposit and how does it work? |
| A: |
Direct Deposit is a safe, proven, confidential method of
receiving a payment. Money is electronically transferred from a company or organization
into your checking or savings account. |
| Q: |
Why is Direct Deposit good for consumers? |
| A: |
Direct Deposit is secure, convenient and fast. Payments
made by Direct Deposit have never been lost. Direct Deposit saves consumers from waiting
in lines at the bank, and it gives many people access to their money one to four days
earlier than a check. The satisfaction rate for Direct Deposit is 97 percent. |
| Q: |
What will Direct Deposit cost? |
| A: |
Direct Deposit is a free service offered by your employer
and most financial institutions. |
| Q: |
How do I know when my payment has been deposited? |
| A: |
Most employers will issue a payment stub that is identical
to what you receive with a traditional paycheck. It will show how much was deposited in
your account and how much was taken out of your pay for taxes, insurance and other items.
If your employer does not issue payment stubs, your bank will notify you within two days
of receiving the Direct Deposit or will provide you with a telephone number to use to
check the status of your deposits. |
| Q: |
When do I have access to the money? |
| A: |
Typically, your payment is available first thing in the
morning on payday. |
| Q: |
If I sign up for Direct Deposit, how can I be sure that
no one will have access to my account? |
| A: |
Direct Deposit is a confidential way to send and receive
payments. Although your company does have a limited ability to reverse your Direct Deposit
payment, it can only access funds that were deposited in error, generally when the company
has issued the transaction twice or issued a deposit in the wrong amount. On average,
fewer people see your account information with Direct Deposit than with checks. |
| Q: |
Can I divide my pay among different accounts if I use
Direct Deposit? |
| A: |
Yes. You can have your pay deposited into one account or
split among several accounts. This financial flexibility is one of Direct Deposit's best
features. Decide once how you want your pay divided and your plan will be carried out
automatically every pay period. This increases your financial control and discipline in
saving for the future. |
| Q: |
If I have a problem with Direct Deposit, how do I solve
it? Whom should I call? |
| A: |
Problems with Direct Deposit are rare. In fact, you are
much more likely to have a problem with a check. But if any matter should arise, contact
your employer or your financial institution. The problem can usually be corrected
immediately. |
| Q: |
What happens if my payment goes into someone else's
account? |
| A: |
That's very unlikely. Should an error occur, however,
simply notify your employer and your financial institution. The problem can be corrected
with one phone call. |
| Q: |
What happens if I change banks? |
| A: |
Just fill out a new authorization form and provide your
written permission to switch accounts. |
| Q: |
How do I sign up for Direct Deposit? |
| A: |
First, find out if your employer offers Direct Deposit. If
it is available, your human resources or payroll department can give you the authorization
form. If Direct Deposit is not available, ask your human resources representative to
consider offering it. |
| Q: |
How can I let my employer know that I want Direct
Deposit? |
| A: |
Make a request to your human resources or payroll
representative. In many cases, a company will sign up if it knows that employees want the
service. Use our list
of compelling reasons for a company to offer Direct Deposit as an aid when you meet
with your company's resource staff. Don't forget to direct your company to this Web site
for more information and for answers to any questions. |
| Q: |
Can my employer require me to use Direct Deposit? |
| A: |
Some states allow companies to mandate Direct Deposit,
however we believe Direct Deposit is so beneficial that you will want to use it without
being prompted. To find out the rules in your state, contact your state's labor
department. |
Frequently Asked Questions About Direct Deposit