Direct Deposit

Most employers use direct deposit, which electronically transfers your pay straight from your employer’s bank account into yours. This process completely eliminates the need for a physical check.

Direct deposit operates through the automated clearing house (ACH) system. Think of ACH as a secure, underground pipe system across the entire U.S. banking network that allows banks to make transfers.

When you are hired, you give your employer two pieces of information: Your routing number (which identifies your bank) and your account number (which identifies your specific bank account). This is how you get paid.

Why Direct Deposit Is Preferred (vs. Physical Checks):

• Speed: Your money is usually available the moment your bank opens on payday. Some banks even make it available a day or two early.
• Security: There is no paper check that can be lost, stolen, or damaged.
• Convenience: You don’t have to visit a bank or ATM to deposit your check. Your money arrives automatically, even if you are traveling.