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 Misconceptions about Direct Deposit
| Myth: |
If I have a problem with Direct Deposit, it is going to
be more difficult to rectify than with a traditional paycheck. |
| Reality: |
First of all, 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, all you need to do is contact your employer or financial institution. The problem
can usually be corrected immediately. |
| Myth: |
With Direct Deposit, more people will have access to my
personal account information, and my employer will be able to take money out of my
account. |
| Reality: |
Direct Deposit is a very confidential way to send and
receive payments of all kinds. Although your company does have a limited ability to
reverse your Direct Deposit payment, it cannot access any other funds in your account. On
average, fewer people see your account information with Direct Deposit than with checks. |
| Myth: |
I will not know when my payment has been deposited or
the amount that was withheld from my paycheck if I use Direct Deposit. |
| Reality: |
Most employers 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. |
| Myth: |
I cannot divide my pay among different accounts if I
use Direct Deposit. |
| Reality: |
With Direct Deposit, 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. |
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
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