Definition of Direct deposit:
The term direct deposit refers to the deposit of funds electronically into a bank account rather than through a physical, paper check. Direct deposit requires the use of an electronic network that allows deposits to take place between banks. This network is called the automated clearing house (ACH). Because the funds are transferred electronically, recipients' accounts are credited automatically, so there is no need to wait for the money to clear. Common uses for direct deposit include paychecks, tax refunds, and other benefits.
Automatic transfer of salaries, wages, rents, benefits, or other such sums, directly to the account of an employee or beneficiary.
Direct deposit is a safe and convenient way to receive payment. Funds are deposited into a recipient's account directly through an electronic network. In order for the funds to be transferred from the payer, the recipient must provide the name of their bank, their account number, and the bank's routing number to the person or business making the deposit. Alternatively, they may provide a void check which has the same information printed on it.
How to use Direct deposit in a sentence?
- It requires the use of an electronic network that allows deposits to take place between banks called the automated clearing house.
- Payees must provide the payer with their banking information or a void check in order to receive direct deposit payments.
- Direct deposit is the deposit of funds electronically into a bank account rather than through a physical, paper check.
- Salaries, tax refunds, investment redemptions, and government benefits are commonly paid through direct deposit.
Meaning of Direct deposit & Direct deposit Definition