The term direct deposit refers to the deposit of funds electronically into a bank account via the Automated Clearing House (ACH) Network rather than through a physical, paper check. This allows your employer, payroll or benefits provider or government agency to send your pay or regular income directly to your bank account so you won’t need to deposit a paper check each payday, allowing you to access your money more quickly and easily.
What is considered an eligible direct deposit?
That’s a great question! An eligible direct deposit will be recurring ACH deposit of your regular income from your:
- Employer (including pension plans)
- Payroll provider
- Benefits provider
- Government entity (e.g. Social Security)
Non-eligible direct deposits are ACH deposits that are not regular income from one of the entities listed above or that are not recurring in nature such as:
- Check deposits
- Peer to Peer (P2P) transfers (Paypal, Venmo, etc.)
- Merchant transactions (Paypal, Stripe, Square, etc.)
- Bank ACH transfers
- IRS tax refunds
If you need help setting up your direct deposit, click here!