What is Direct Deposit?

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What is Direct Deposit?

Direct Deposit is the electronic transfer of a payment from a company or organization into the checking or savings account of employees, retirees, taxpayers, vendors, shareholders or other recipients of payments. The payment can be divided among several different accounts and, in many cases, between different financial institutions.

The most popular application of Direct Deposit is for payroll, but it can also be used for many other types of payments, including:

Annuities
Bonuses and commissions
Dividend and interest payments
Pensions
Travel expense settlements
Vendor payments
Tax refunds
Reimbursements

Direct Deposit Users Now 100 Million Nationwide!

Sources:
Direct Deposit and Direct Payment Coalition, www.directdeposit.org or www.directpayment.org
Board of Governors of the Federal Reserve System, www.federalreserve.gov
Mid-America Payment Exchange, www.mpx.org
NACHA, www.nacha.org