Why Direct Deposit?

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

Direct Deposit is an Automated Clearing House (ACH) transaction that is a safe, proven, confidential method of receiving a payment. With Direct Deposit, money is electronically transferred into a checking or savings account.

Q: Is Direct Deposit for everyone?

Direct Deposit is an important employee benefit. It can be an excellent financial planning tool because it allows people to divide their pay into as many different accounts as they wish. Saving or investing automatically this way adds up.

Q: How many people use Direct Deposit?

Nearly 65 percent of workers receive one or more payment via Direct Deposit. Research conducted by the Federal Reserve found that 97 percent of consumers using Direct Deposit are very satisfied.

Q: Are checks safe?

According to a study by Tinucci & Associates for NACHA, “While the banking system itself is secure, the sheer number of times a check must be passed from hand to hand while it is being processed means there is less security available.” In short, checks are usually safe, but Direct Deposit is safest. For banks, check fraud is a $4.3 billion annual problem. Direct Deposit can eliminate these problems. It is the most private, safe, proven way to transfer money.

Q: Why is Direct Deposit good for employees?

Direct Deposit is secure, convenient and fast. A Direct Deposit payment has never been lost; it saves employees from waiting in lines at their financial institution and gives many people access to their money earlier than a traditional check.

Q: Is Direct Deposit governed by any laws?

The Federal Reserve Banks’ “Regulation E” and NACHA’s operating rules regulate Direct Deposit. Additional rules pertain to government payments.

Q: How do I sign up for Direct Deposit?

Go in Employee Self Service at https://portal.adp.com/public/index.htm using your secure login and password. Click on the Pay and Taxes tab and then on Direct Deposit. On the Direct Deposit screen, click on Add New and add the account type (Checking or Saving, you can add up to 10 accounts), select whether you want to deposit the full amount or a partial amount, and  add the bank transit number and account number from your check using the help aids on the screen. If you select to deposit only a partial amount, we suggest that you add another account for the remaining amount of your check.

Q: Why can I add up to 10 accounts?

One example is the employee wants to deposit a standard amount per pay into a savings account (i.e., Christmas fund) and then the remainder into his/her household checking account. There are many reasons why employees enjoy the option of splitting their paycheck and depositing into more than one account.

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

Your pay stub will be available for you to review in Employee Self Service at https://portal.adp.com/public/index.htm using your secure login and password on every pay day. It will display how much was deposited in your account and how much was taken out for taxes, insurance and other items.

Q: Why should I help save my employer money?

Direct Deposit saves money for employees, companies, the government and society. Most employees are aware that a stable and healthy company provides a reasonable measure of job security, as well as benefits the community and country.

Q: How often will I have a problem with Direct Deposit?

Problems with Direct Deposit are rare. In fact, you are 10 times more likely to have a problem with a check. As the Tinucci & Associates study says, “Direct Deposits really cannot be lost.”

Q: When do I have access to the money?

Your net pay will be deposited by the opening of business the morning pay day and, unlike a paper check, the full amount deposited is immediately available in your account.

Q: What happens if I change banks?

Go in Employee Self Service at https://portal.adp.com/public/index.htm using your secure login and password. Click on the Pay and Taxes tab and then on Direct Deposit. On the Direct Deposit screen, click on the account information you need to change and/or delete. On the next screen you will be able to make changes or delete the Deposit form. If you have any questions, please email payroll at payroll@webster.edu, and we will be happy to provide you with answers.