Direct Deposit

Choose the checking account you want to receive your direct deposit Navigate to Account Services by scrolling up in the mobile app or in the drop down menu on chase.com Click or tap. Direct Deposit March 2018 Direct deposit is a convenient option to electronically deposit payroll or Social Security checks into your KeyBank checking, savings, health savings and money market accounts.

Deposit paychecks, tax returns, and more to your Cash App balance using your account and routing number.

Cash App makes direct deposits available as soon as they are received, up to two days earlier than many other banks. Your first deposit may take longer to become available depending on your employer.

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Direct Deposit Account & Routing Numbers

Enable Direct Deposits to regularly and automatically deposit your paycheck to your Cash App.

Set Up Direct Deposit

Use your account & routing numbers to set up deposits into Cash App.

Missing Direct Deposit

Direct deposits can take between 1–5 business days to arrive in your Cash App from the scheduled arrival date.

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Something Else

There’s always reason to celebrate when payday rolls around, and even more so when you don’t have to lift a finger to receive your money. Skip the inconvenience of taking your paycheck to the bank and depositing with a teller by switching to direct deposit.

Direct deposit is an easy way to access your money through electronic funds transfer straight into your bank account. Although direct deposit is commonly used with employee paychecks, it’s also a convenient way to receive tax refunds, Social Security, unemployment pay, and stimulus checks. Direct deposit has become increasingly popular amid the digital age, and billions of electronic payments are processed every year.

So what’s all the hype about? This guide will walk you through everything you need to know about direct deposit: how it works, the benefits of using it, and more.

What is direct deposit?

Direct deposit is the electronic transfer of funds directly into a bank account rather than through a physical check. Direct deposit is made possible by use of an electronic network known as the automated clearing house (ACH), which facilitates digital deposits between banks.

When is direct deposit used?

Direct deposit is used in a variety of scenarios. Though most commonly used for employee paychecks, it can also be used to receive federal funds from a tax refund, unemployment benefits, or stimulus checks.

Employee pay: Most American employers use direct deposit to pay their employees. For employers, direct deposit comes with lower costs and heightened convenience. For employees, direct deposit makes payday a breeze—the funds you’ve earned simply appear in your account once they’ve been cleared through ACH.

Tax refunds: The U.S. government actually prefers to pay citizens through direct deposit rather than physical check. It’s more secure and much more streamlined for both parties. If you’re owed a tax refund, setting up direct deposit with the IRS makes that transfer quick and simple.

Stimulus checks: As part of the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, the U.S. government distributed emergency assistance stimulus checks. According to IRS.gov, citizens who opted in to the IRS’ direct deposit program received these checks in the bank account reflected on their tax return.

How does direct deposit work?

When you deposit a physical check, your bank or credit union must go through a multistep process before the funds are available in your account. Your financial institution must contact the bank that issued the check, cross-check the details, and confirm that the payer has enough funds to transfer. This process takes time, which is why it can take a day or two to see those funds appear in your account.

With direct deposit, the process is simplified. Ahead of payday, your employer—to which you’ve given your direct deposit information—transfers your compensation to your bank. Your financial institution then releases the funds to your account on payday. Once payday rolls around, you have immediate access to your funds.

How long does direct deposit take?

Direct deposit is known for being significantly speedier than manual check deposits. Generally speaking, direct deposit funds are accessible the morning of your designated payday.

Depending on your bank, direct deposit may happen at a specific time. Finding the exact time your bank posts direct deposits to your account is simple. Contact your bank directly to ask a representative. Or conduct your own independent research and watch to see what time of day your direct deposits are transferred into your account.

Every bank is different, which means every bank handles direct deposit its own way. If you bank with one of the following popular banks, you can expect your direct deposit to post at the following times:

• Wells Fargo: Direct deposits become available by 6:30 AM ET on the date the bank receives the transfer.
• Bank of America: Most direct deposits credit Bank of America accounts in “real time” on the same date your employer initiates the transfer.
• Chase Bank: Direct deposits are posted between 3 AM and 5 AM ET on the date the bank receives the transfer.

Is direct deposit safe?

Yes, direct deposit is totally safe. Although security is a common concern with direct deposit, this payment method is actually exponentially safer than the paper check alternative. Paper checks can be lost, stolen, or damaged, which makes them quite precarious to deal with. It’s even possible for a fraudster to cash a check not made out to them should your check land in the wrong hands.

Direct deposit eliminates all of these potential security issues. Because funds are transferred digitally and automatically from the payer’s account to your bank account, your money can not be lost or stolen.

What are the benefits of direct deposit?

Direct deposit comes with several outstanding benefits that make it easy to understand why it’s become such a popular modern payment method. Let’s take a closer look at the benefits of direct deposit for both employees and employers.

For employees:

• Convenience

Without the need to visit a bank to deposit a physical check and without any long wait time, direct deposit is the epitome of convenience. Eliminate any go-betweens by allowing your payer and financial institution to communicate and complete transfers without any involvement from you.

• No paperwork necessary

If you’ve grown accustomed to hoarding pay stubs for recordkeeping, you can say goodbye to your paperwork piles when you switch to direct deposit. With direct deposit, everyone involved has a digital record of the electronic payments. Online banking makes tracking your transaction history simple and streamlines all of the information you might need for future reference.

• Eco-friendliness

Going paperless is a popular eco-conscious trend. By switching to direct deposit, you can do your part in going green.

• Simplified budgeting

If you’re looking to build up your savings account and curb your debit card spending, direct deposit is a fantastic automated solution. When you set up direct deposit, you can request that a portion (or the full deposit amount) of your paycheck be directly deposited.

For employers:

• Money-saving

By not writing, printing, and mailing paychecks, employers can significantly reduce costs. And by opting for direct deposit, you can also avoid costs associated with reissuing lost or stolen checks and stopping payments.

• Time-saving

Switching to direct deposit is an excellent way to better optimize time spent on payroll duties. Writing, signing, and delivering paychecks to employees can be time consuming and labor intensive. Direct deposit eliminates all of these painstaking steps by automatically transferring funds to your workforce ahead of payday.

• Increased security

Lost or stolen paper checks are among the most common sources of identity theft and fraud. Direct deposit protects you and your employees from the many risks that come along with stolen checks and forged signatures.

• Automated pay scheduling

Even on your busiest day, you’ll never have to worry about missing payroll and leaving your employees high and dry on payday. Modern technologies like same-day ACH payments make it easy to automate transfer schedules that ensure that paychecks clear on time, every time.

How to set up direct deposit

Employers wishing to set up direct deposit can expect to follow this process:

1. Select a direct deposit provider: Employers can choose to work with their bank or use a payroll software that offers direct deposit features.
2. If using a bank to complete direct deposit, speak directly to your bank contact or use the online portal to set up your direct deposit. If using payroll software, follow the integrated directions within the program. Your payroll software will likely ask you to complete a verification process.
3. Collect information from employees, including:

• Bank account number
• Bank’s routing number
• Type of account—checking account or savings account
• Bank name and address

Your employees will also need to sign an authorization form that allows you access to transfer their paychecks electronically. If using payroll software, employees should be able to log in, fill in necessary information, and provide authorization for direct deposit in one central location.

1. Create a direct deposit and payroll schedule: Once all necessary information entered into your payroll software or sent over to your bank provider, there may be a waiting period to get started with direct deposit, so plan accordingly. Create a pay schedule in line with your direct deposit plans, then communicate the new schedule to your team.
2. Run payroll: Once direct deposit is set up, every time you run payroll, your employees will receive their funds via direct deposit.

What happens if direct deposit is late?

If you’re an employee and you find that a direct deposit hasn’t hit your account on the day it was scheduled, take a deep breath and don’t panic. Contact both your bank and your payer to check on the status of your incoming pending transfer.

Oftentimes, late direct deposits are due to system glitches or changes that cause delays in delivery. Typically, the party responsible for issuing your direct deposit will notify you and provide a timeline for when you might expect a successful deposit. In the event that you haven’t received any word from your payer or bank, contact your employer immediately.

Www.directdeposit.gc.ca

Conclusion

Direct deposit makes accessing your hard-earned money a breeze. Payers and employers reap the benefits of slashed costs and automated transfers. For payees and employees, it eliminates security risks and allows you to access your money faster. Without any go-betweens or the need to visit a bank to deposit checks, direct deposit is the most convenient way to send and receive payments.

Disclaimer

This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.

Direct Deposit Stimulus

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