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Definition of Direct Deposit:

Direct deposit is the practice where you transfer money electronically from one bank account to another. It is regularly used for salary, pension, gratuity and other monetary government perks. Direct deposits are processed much quicker, safer, and a convenient process.

How to set up Direct Deposit?

Direct deposit bank transfers are done using Automated Clearing House (ACH) network, which processes payments among financial institutions. 

To enable direct deposit for your organization, obtain the bank account information of your employees. You can get this information either through a direct deposit form or ask for a voided check. This will help you with the following information: 

Since the account details is sensitive information, exercise care and caution while handling it. 
It usually takes a few days to weeks to set it up. Once it’s set, employers can start ACH payments for direct deposit into employees' bank accounts. Every time a payment is processed, the employer's account is debited automatically and the employee's account is credited.

Benefits of Direct Deposit for 

Employers:

Employees: