Direct Deposit

Direct deposit is a system that allows an employer to electronically deposit funds into an employee’s bank or credit union transaction account. Direct deposit is commonly used to pay employees their hourly wages or salary, but can be used to pay commissions, bonuses and other payments. It benefits the employer, since the employer doesn’t have to spend time generating and distributing a paper check, and it benefits the employee because they don’t have to take the time to go to the bank to deposit a check — the money is deposited automatically and available on payday.