As a whole, direct deposit is the most popular form of payment as it eliminates the risk of losing a check and eliminates the need to physically visit a bank to make a deposit.
Direct deposit allows an employee's pay to be immediately available in their accounts at midnight the day before pay day and it is not subject to a check clearing wait period. Salaries paid via check can take a week or more to clear within their account.
Direct deposits are also popular for income tax refunds, as it is the fastest method of payment.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Direct deposit — also known as Direct credit is a banking term used to refer to certain payment systems used to transfer money where a payment is initiated by the payer not the payee, namely:Bank Account In Europe, the giro system In the United States, the… … Wikipedia
direct deposit — A system wherein amounts are transferred from a payor s checking account to the accounts of payees no matter where they bank. The transfers are made electronically and do not require a paper check or draft. The key consideration is that the… … Financial and business terms
direct deposit — UK / US noun [countable/uncountable] Word forms direct deposit : singular direct deposit plural direct deposits American an arrangement in which your salary is always put directly into your bank account … English dictionary
direct deposit — a plan in which salaries or other payments are transferred by the paying agency directly to the accounts of the recipients. * * * noun [noncount] US : a way of paying someone so that the money is sent directly into the person s bank account… … Useful english dictionary
direct deposit — di.rect de posit n [U] a method of paying someone s wages directly into their bank account >direct deposit v [T] … Dictionary of contemporary English
direct deposit — direct′ depos′it n. bus the electronic transfer of funds directly from the payer into the bank account of the recipient … From formal English to slang
direct deposit — noun Date: 1974 a method of payment in which money is transferred directly to the payee s account without the use of checks or cash … New Collegiate Dictionary
direct deposit — a plan in which salaries or other payments are transferred by the paying agency directly to the accounts of the recipients. * * * … Universalium
direct deposit — di,rect de posit noun count or uncount AMERICAN an arrangement in which your salary is always put directly into your bank account … Usage of the words and phrases in modern English
direct deposit — noun (U) AmE a method of paying someone s wages directly into their bank account … Longman dictionary of contemporary English