Direct deposit is the electronic cash transfer service that allows the transfer of money from an employer bank account to an employee bank account on payday. In direct deposit, employees must sign an agreement with the employer regarding the paycheck for payment as electronic transactions.
Employees need a verified account to receive money from their employers. To verify your account, an employee must submit a statement or a blank check from the bank.
By doing this, it will provide important information that will enable the bank to get the employer's bank account number and routing number. A routing number is a code string that identifies the number of employees of banking institutions.
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Direct deposit is an electronic transaction from bank to bank employee after the authentication of the account information. After authentication, an employee can expect regular paychecks that arrive on time.
This method has many advantages. This saves time of the employees. Now they need not to stand in long queues at ATMs. Employees also do not need to wait for check clearance because the funds are cleared immediately.
It is a process that is safe and secure because an individual does not have to worry that it might be stolen. Moreover, it eliminates the risks that come with carrying large amounts of cash.