Home/Glossary/Direct DepositUpdated on: April 13, 2024

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What is Direct Deposit?

The term direct deposit refers to the deposit of funds electronically into a bank account rather than through a physical, paper check. Direct deposit requires the use of an electronic network that allows deposits to take place between banks. This network is called the automated clearing house (ACH). Because the funds are transferred electronically, recipients' accounts are credited automatically, so there is no need to wait for the money to clear. Common uses for direct deposit include paychecks, tax refunds, and other benefits. Direct deposit is a safe and convenient way to receive payment. Funds are deposited into a recipient's account directly through an electronic network. In order for the funds to be transferred from the payer, the recipient must provide the name of their bank, their account number, and the bank's routing number to the person or business making the deposit.

Software with Direct Deposit

PRODUCT NAME SW SCORE (OUT OF 100) AGGREGATED RATINGS (OUT OF 5)
Paycom 98 4.4
Gusto 97 3.7
OnPay 94 4.9
Remote.com 93 4.7
Zenefits 93 4
Paychex Flex 92 4.3
greytHR 92 4.6
Justworks 91 4.7
QuickBooks Payroll 91 4
Deel 89 4.9

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