Direct Deposit is the electronic transfer of a payment from your company or organization into an individual's checking or savings account, rather than disbursing a paper check.
Direct Deposit is an ideal way to manage payments to your employees, and for more than just payroll. It can be used for expense reimbursements, pensions, dividends and bonuses.
The benefits of Direct Deposit to both consumers and companies are numerous. This is why most large companies (500+ employees) offer Direct Deposit, and it has become a staple in today's employee benefit packages.
Businesses can save anywhere from $0.50 to $1.25 per payment by using Direct Deposit instead of checks.
Companies of any size can offer Direct Deposit. Many payroll software packages and independent processors provide a Direct Deposit feature.
Employees who use Direct Deposit can access their money in their accounts at their financial institution's opening of business on payday – they never need to go to the bank during business hours to deposit checks.
Problems with Direct Deposit are very rare - if there is a problem, it can usually be resolved with as little as one phone call.
Ninety-seven percent of those who use Direct Deposit are very satisfied with it.
Three out of four employees who have Direct Deposit available use it.
Direct Deposit is the most widely used ACH payment. In 2005, payments made by Direct Deposit increased 5.1 percent to more than 4.4 billion payments. The average dollar amount of a Direct Deposit was $1,290.
Most large companies (500+ employees) offer Direct Deposit, and it has become a staple in today's employee benefit packages. View sample authorization form »
"We have found Direct Deposit to be highly successful as an accurate, efficient way of paying our employees. The benefits are by far greater than the challenges of reconciling and reissuing lost or stolen checks and the employees can count on a safe means of payment. Our participation has grown to approximately 77 percent. That speaks for itself."
