• ...a smart way to get paid. It is ideal for more than just payroll. Other applications include expense reimbursements, tax refunds, pensions, dividends and bonuses.
• ... safe, confidential, convenient and fast. Employees who use Direct Deposit can access their pay in their accounts at their financial institution’s opening of business on payday. For income tax refunds, the government often makes refunds via Direct Deposit within days of receiving returns. With Direct Deposit there is no waiting for checks to clear.
• Sixty-five percent of employees who have Direct Deposit available use it.
• Companies can save anywhere from $0.50 to $0.60 per payment by using Direct Deposit instead of checks.
• Many financial institutions offer free checking or other account benefits to consumers who use Direct Deposit.
Direct Deposit is a safe, proven, confidential method of receiving a payment. Money is electronically transferred from a company or organization into your checking or savings account.
How will I know when my payment has been deposited or the amounts that were withheld from my paycheck if I use Direct Deposit?
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. You may verify your deposit has been made by calling your financial institution or checking your account online with Private PC, our Free Internet banking service. Sign up online and get started right away!
If I have a problem with Direct Deposit, is it going to be more difficult to rectify than with a traditional paycheck?
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 the company that sent you the Direct Deposit payment. The problem can usually be corrected immediately.
With Direct Deposit, more people will have access to my personal account information. Will my employer or the company I authorize to make a Direct Deposit be able to take money out of my account?
Direct Deposit is a very confidential way to send and receive payments of all kinds. Although your employer or the 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.
Can I divide my pay among different accounts if I use Direct Deposit?
With Direct Deposit, you may have the option of depositing into more than one account. Each employer or company offering Direct Deposit determines how many accounts they will allow.
How many people use Direct Deposit?
More than half of Americans (65 percent) use Direct Deposit for their pay. Direct Deposit usage continues to grow. In 2003, nearly 41.3% of taxpayers used Direct Deposit for their tax refunds. consumers used Direct Deposit for their tax refunds. Ninety-seven percent of Direct Deposit users are very satisfied with it.
What happens if my payment goes into someone else's account?
That's very unlikely. Should an error occur, however, simply notify your employer or the company that sent the Direct Deposit payment.
How do I sign up for Direct Deposit?
First, find out if Direct Deposit is offered. If it is available, ask for the authorization form. If Direct Deposit is not available, ask your employer or the company to consider offering it.
How can I let my employer know that I want Direct Deposit?
In many cases, a company will start offering Direct Deposit if it knows that you want the service. Customize and send the Letter Requesting Direct Deposit to show your interest in Direct Deposit and the reasons Direct Deposit should be offered. Don't forget to direct your employer to this Web site for more information and for answers to any questions.
Can my employer require me to use Direct Deposit for payroll?
Some states do allow companies to mandate Direct Deposit of payroll. However, we believe Direct Deposit is so beneficial that you will want to use it without being prompted. To find out the rules in your state, contact your state's labor department.
What additional costs will I incur if I participate in direct deposit?
Your employer and your financial institution probably do not have a charge for Direct Deposit. In fact Florida Telco offers “free” checking to consumers using Direct Deposit, and there is no charge for Direct Deposit.
When can I withdraw my money from my account if I use Direct Deposit?
Your funds are available to you when your financial institution opens for business on payday. In many cases, you can even make withdrawals of your funds at ATMs early in the morning – even before your financial institution opens its doors and teller windows for business.
How will I ever be able to keep track of the balance in my account?
You should receive a paper or electronic notice of the amount and date the funds will be deposited into your account. Your financial institution must provide you with a way to verify deposits to your account. Many offer automated telephone systems or Internet banking products.
Why do companies ask for a voided check?
The Company uses the financial institution identification number and account number that appear on the bottom of your check to set-up the Direct Deposit properly. These numbers can be difficult for consumers to identify, so including a voided check ensures that your deposit will be processed properly.
The amount of money I receive is confidential. With Direct Deposit don’t I lose that privacy?
No. In fact, you will likely have more privacy with Direct Deposit. The amount of information provided on a check is astounding, including: your name and signature, date the check was written, to whom it was written, the dollar amount, name and address of the account holder, and the bank identification and account number.
With Direct Deposit the transaction passes electronically through the banking system. Multiple levels of security are in place to ensure that your payments are not tampered with or intercepted.
Must I have a checking account to use direct deposit?
Some companies offer Direct Deposit to both checking and savings accounts. You will need to check with each company from whom you will receive a Direct Deposit for their policy.
Source: Direct Deposit and Direct Payment, www.directdeposit.org and www.directpayment.org.