How Hassle-Free is Direct Deposit Cash Transfer

Direct Deposit would be the electronic cash transfer service. It enables you to transfer money from the bank account of the employer to the bank account of the employee on payday. The employee would be required to sign an agreement with the employer authorizing the employer or the paycheck processor of the employer to make payment using an electronic transaction. The employer should have a verified account to give out cash to his employee.

Need for verification of the account

For verifying an account, an employee should send a blank cheque or a statement from his bank. It would provide vital information that would enable the bank of the employer to receive the bank account number of the individual along with the routing number, which is the string of coded numbers for identifying the banking institution of the employee.

A pre-note would be another prerequisite for specific payroll processors. This electronic transaction done from the payroll bank of the processor to the bank of the employee would validate the information of the account. After authentication of the account, the employee could expect regular and on-time paychecks.

Benefits of direct deposit

You may wonder how long does direct deposit take. Rest assured direct deposit would not take much time. However, you could make the most of the benefits offered by direct deposit such as saving time, convenience, and ease of depositing pay in the account of the employee. It would save the time of the employee for standing in long ATM queues and clearing the cheque. It would also clear the funds quickly.

How safe is the process

Rest assured the process is relatively safe, as an individual would not require worrying about keeping the cheque safe from being stolen. It would avoid the risk that comes along with carrying a huge amount of money.

Being a confidential process, money would be transferred electronically and only a few people would know about the money transfer. It would also reduce the risk of identity theft. The service would enable the employee to have adequate control of his money. The employee could divide the cash into various accounts with ease. Numerous employees would be properly intimated on the piece of paper, about the money deposited in the account along with the deductions made from the salary.

Is that an efficient process?

The process has been recommended as an effective and efficient way to gain control over your finances. It would also be a simpler way to save money by avoiding the fee levied on cashing the cheque or fees incurred on the bounced cheque.

Yet another benefit would be the employee receiving quicker tax refunds. They do not have to wait for the paper cheque to clear in a few weeks. The flexible process would assist in paying other benefit payments such as social security payments.

The direct deposit would also assist an individual to control debt, as a person having less liquid cash would be less impulsive to spend the money. The employers prefer the process, as it saves them the printing expenses incurred on payroll cheques.