What is Direct Deposit and how does it work?
Direct Deposit is a safe, proven, confidential method of receiving a payment. Money is electronically transferred from your Employer into your checking or savings account.
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Why is Direct Deposit good for consumers?
Direct Deposit is secure, convenient and fast. Payments made by Direct Deposit have never been lost. Direct Deposit saves employees from waiting in lines at the bank, and it gives many people access to their money one to four days earlier than a check. The satisfaction rate for Direct Deposit is 97 percent.
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What will Direct Deposit cost?
Direct Deposit is a service that may be offered by your Employer and most financial institutions.
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How do I know when my payment has been deposited?
Your Employer will 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.
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When do I have access to the money?
Typically, your payment is available first thing in the morning on payday.
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If I sign up for Direct Deposit, how can I be sure that no one will have access to my account?
Direct Deposit is a confidential way to send and receive payments. Although your Employer does have a limited ability to reverse your Direct Deposit payment, it can only access funds that were deposited in error, generally when your Employer has issued the transaction twice or issued a deposit in the wrong amount. On average, fewer people see your account information with Direct Deposit than with checks.
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If I have a problem with Direct Deposit, how do I solve it? Whom should I call?
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, contact the Payroll Officer for your Employer or your financial institution. The problem can usually be corrected immediately.
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What happens if my payment goes into someone else's account?
That's very unlikely. Should an error occur, however, simply notify your Payroll Officer and your financial insititution. The problem can be corrected with one phone call.
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What happens if I change banks?
Just fill out a new authorization form and provide your written permission to switch accounts.
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How do I sign up for Direct Deposit?
Your payroll department can give you the authorization form or you can download a copy of the Direct Deposit form by clicking here.
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How can I let my Employer know that I want Direct Deposit?
Make a request to your payroll officer.
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Can my Employer require me to use Direct Deposit?
Some states allow companies to mandate Direct Deposit, however Direct Deposit is so beneficial that you will want to use it without being prompted. Check your state's labor codes for more details.
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