Direct deposit is when money is sent electronically from one bank account to another. The payer's bank can send the funds directly to the recipient's bank.
This is common for payment of wages where the payer is the employer, and the recipient is the employee. Direct deposit eliminates the need for paper checks.
It offers additional benefits for employers and employees.
Direct deposit is a type of ACH transaction. The Automated Clearing House (ACH) is the nationwide payment processing network used to send money between banks in the U.S.
* This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up to date.
This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up to date