MANAGEMENT

Detailed explanation-1: -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).

Detailed explanation-2: -Direct deposit is the electronic transfer of money from one bank account to another without paper checks or cash.

Detailed explanation-3: -What is direct deposit? Direct Deposit (Electronic Funds Transfer) is the electronic transfer of your paycheck, benefit check or other payment into your checking, share draft or savings account, or other low-cost account offered by your bank.

Detailed explanation-4: -With direct deposit or electronic funds transfer (EFT), the general public, government agencies, and business and institutions can pay and collect money electronically, without having to use paper checks. Direct deposit (EFT) is safe, secure, efficient, and less expensive than paper check payments and collections.

Detailed explanation-5: -Payroll payments are an example of direct deposits. Employers can send funds to their employees’ bank accounts on payday without delay or the risk of losing checks in the mail. Recipients also benefit from direct deposits, as the money is automatically added to their account balance with no action required.