Direct Deposit for Financial Institutions

Expand your business and drive customer loyalty

Convenience, cost savings, time savings, increased security—these benefits of Direct Deposit via ACH can help you generate new customers and a loyal customer base.

Direct Deposit is a key factor in consumers’ satisfaction and continued association with their financial institution.  Consumers paid by Direct Deposit rate the financial institution they use for Direct Deposit services a 9 on a 10-point scale. Furthermore, 55 percent indicate that Direct Deposit use is the single biggest factor motivating them to continue their banking relationship. Direct Deposit users also hold an average of nearly three times more financial accounts or services than the average account holder.

Meeting Needs of Customers

Direct Deposit helps your business customers meet their bottom-line business objectives with increased efficiency. Electronic funds transfer securely to their employees’ accounts, eliminating manual check processing and reducing administration costs. Transactions are never lost, and account reconciliation is simplified. Businesses also can process payroll quickly—even on the same day—allowing for fast resolution of any errors and ensuring accurate pay. 

For individual customers, Direct Deposit is a convenient way to get paid. Money is automatically deposited into their accounts on time, every time. The secure electronic transfer makes funds available at the opening of business on payday for easy access, and your customers don’t even have to be at work or in town to receive a deposit.

Direct Deposit can be used for:

• Annuities
• Bonuses and commissions
• Child support payments
• Dividend and interest payments
• Pension/401(k) disbursements
• Social Security and other government payments
• Tax and other refunds
• Travel and other employee expense reimbursements

Keep businesses and employees protected

Direct Deposit transactions are safe: Unlike a paper check, which passes through many hands, Direct Deposits are processed electronically, helping to keep sensitive account information secure.


Calculate Savings



Visit our calculator to give your business customers a quick estimate of the savings they can achieve by switching to Direct Deposit.

Get Started

Contact your Regional Payments Association for assistance and services that will help you talk to your customers about Direct Deposit via ACH.

The Regional Payments Associations, through their membership in NACHA- The Electronic Payments Association, are specially recognized and licensed providers of ACH management, education, assistance, and services to all types of financial institutions (commercial banks, savings banks, and credit unions) across the United States and its territories.


Use these resources to help promote Direct Deposit to your business and consumer customers.


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Fact Sheets »
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No. Direct Deposit has been used in countries around the world for decades because it is convenient, safe, and environmentally friendly, and the number of users continues to grow.
answer is how many people use
Direct Deposit is an important benefit for businesses and governments to offer and for individuals to use. As long as an individual has a bank account or prepaid/payroll card, Direct Deposit can be an excellent financial planning tool as well as a simple, safe, smart, and environmentally friendly way to make and receive payments.
Direct Deposit via ACH is an electronic payment deposited directly to your checking or savings account. Types of payments deposited can include payroll, employee expense reimbursement, government benefits, tax and other refunds, and annuities and interest payments. It includes any ACH credit payment from a business or government to an individual.
Your customers should contact the company that sent the payment.
Yes. Your transactions are safe and confidential since money transferred electronically passes through fewer hands than a paper check. Also, federal regulations and banking rules provide consumers with protection regarding electronic payments.
Your customers should be able to manage their balances via account statements, automated systems, or online.
Advise them to contact their employer or the company that sent the Direct Deposit via ACH. The problem can usually be corrected quickly.
Should an unlikely error occur, your customer should simply notify the company that sent the payment.


Simply give your new account and financial institution information to your employer or the company issuing your payment. You may also need to complete a new authorization form. Be sure to leave the old account open until the first Direct Deposit via ACH transaction appears in your new account.
The best way to keep transactions confidential from a joint account holder is to open another single account and split your deposits.
Yes. Your payment stub or online service provided by your employer to view payroll information should show the details of your taxes, insurance, or any other deductions.
You may have the option of splitting the deposit between one or more checking or savings accounts. Ask your employer about this option.
Employers typically adjust their payroll processing so that funds are available on the first business day before the scheduled pay date. Ask your employer if it does the same.
For payroll, companies typically issue a dated payment stub that is identical to a paper check stub, or provide employees access to an online service that shows the amount and the date of the deposit, as well as tax and other withholding information.
Your money is generally available to you at the start of business on the day of the deposit.
No. Your money can be deposited into any checking or savings account or distributed among different accounts or deposited onto a payroll or prepaid card.
No. You may use any bank or credit union in the United States that participates in the ACH Network. Most do. Ask your financial institution if they can accept Direct Deposit via ACH.
The authorization form you completed to enroll in Direct Deposit via ACH should have information as to how to revoke authorization and discontinue participation. You may also want to contact your employer or the company issuing your Direct Deposit.


Using Direct Deposit reduces the risk of fraud by eliminating the use of paper checks that could be altered or counterfeited. Unlike a paper check that bears your account number for all to see, when you use Direct Deposit your account number remains confidential to your financial institution or payroll provider. Make sure that the computer you use to initiate your Direct Deposit has the most recent versions of anti-virus and anti-malware software and all updates loaded, and avoid using that computer for personal emails, surfing the Internet, and social networking. Talk to your financial institution or payroll provider to learn about additional sound business practices to protect your sensitive data.
Direct Deposit is appropriate for a company of any size. Whether you have 10, 10,000 or 100,000 employees, shareholders, or retirees, Direct Deposit via ACH streamlines payment processing and saves time and money.
Direct Deposit via ACH is a much greater asset than check "float." The savings from Direct Deposit add to your company's bottom line, and administrative costs can be reduced by more than 50 percent a year. With advances in technology and payment processing, check float is quickly becoming a thing of the past.
Problems with Direct Deposit are rare. Work directly with your financial institution or payroll provider to resolve any problems. Employees may verify their deposit by calling their financial institution or checking their account online.
Employees can view their Direct Deposit transactions on their online banking service and on monthly account statements. Check with your financial institution or payroll provider for electronic or paper-based options for reporting gross, deduction, and net amount details to your employees.
Some states allow companies to mandate Direct Deposit of payroll. Contact your state's labor department for details.
Your financial institution or payroll provider will provide what you need to start offering Direct Deposit. Most business software packages now include Direct Deposit via ACH as a standard feature.
No. In fact, most companies recoup any Direct Deposit start-up costs in savings and increased productivity in the first year of use. Your company should also realize reductions in printing, postage, and error resolution costs.
Many companies discover when they offer Direct Deposit as a benefit that it is very popular. The secure transfer of funds is a convenient way for your employees, shareholders and retirees to get paid, and 97 percent of Direct Deposit users are very satisfied with it.