What is a Direct Deposit?
Direct deposit is an electronic payment method where funds are transferred directly into a recipient's bank account. Widely used for distributing salaries, pensions, government benefits, and tax refunds, it's a convenient, fast, and secure way to receive payments. In contrast to traditional paper checks, direct deposit eliminates the need for physical handling of checks and speeds up the access to funds. Employers and payers benefit from its efficiency and reduced processing costs, while recipients enjoy immediate availability of funds and reduced risk of lost or stolen checks.