Frequently Asked Questions

Q: What is Direct Deposit and how does it work?

A: Direct Deposit is a safe, proven, confidential method of receiving a payment. Money is electronically transferred from a company or organization into your checking or savings account.

Q: How many people use Direct Deposit?

A: More than half of Americans (55 percent) use Direct Deposit for their pay. Direct Deposit usage continues to grow. In 2002, more than 40 million consumers used Direct Deposit for their tax refunds.

Q: Why is Direct Deposit good for consumers?

A: Direct Deposit is secure, convenient and fast. A Direct Deposit payment has never been lost. Direct Deposit saves consumers from waiting in lines at the bank or credit union, 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.

Q: If I have a problem with Direct Deposit, how do I solve it? Whom should I call?

A: Problems with Direct Deposit are rare. In fact, you are much more likely to have a problem with a check. However, if any matter should arise, contact your employer or your financial institution. The problem can usually be corrected immediately.

Q: What will Direct Deposit cost?

A: Direct Deposit is a free service offered by your employer and most financial institutions.

Q: How do I know when my payment has been deposited?

A: Most employers 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. If your employer does not issue payment stubs, your financial institution will notify you within two days of receiving the Direct Deposit or will provide you with a telephone number to use to check the status of your deposits.

Q: When do I have access to the money?

A: Typically, your payment is available first thing in the morning on payday.

Q: If I sign up for Direct Deposit, how can I be sure that no one will have access to my account?

A: Direct Deposit is a confidential way to send and receive payments. Although your company does have a limited ability to reverse your Direct Deposit payment, it can only access funds that were deposited in error, generally when the company 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.

Q: Can I divide my pay among different accounts if I use Direct Deposit?

A: Yes. You can have your pay deposited into one account or split among several accounts. This financial flexibility is one of Direct Deposit's best features. Decide once how you want your pay divided and your plan will be carried out automatically every pay period. This increases your financial control and discipline in saving for the future.

Q: What happens if my payment goes into someone else's account?

A: That's very unlikely. Should an error occur, however, simply notify your employer and your financial institution. The problem can be corrected with one phone call.

Q: What happens if I change financial institutions?

A: Just fill out a new authorization form and provide your written permission to switch accounts.

Q: How do I sign up for Direct Deposit?

A: First, find out if your employer offers Direct Deposit. If it is available, your human resources or payroll department can give you the authorization form. If Direct Deposit is not available, ask your human resources representative to consider offering it.

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