Direct Deposit is the most common application for ACH. It is primarily used for the deposit of payroll, however, it can also be used for the additional applications listed below. Direct Deposit transactions can be recurring or one-time deposits.
- Increases reliability and security, eliminating reissues for lost or stolen checks
- Provides employee convenience because their funds are available on a timely basis, even during vacation, illness, or business trips
- Minimizes banking time for employees
- Minimizes time spent on account reconciliation
- Improves cash management and enhances forecasting of cash flow
- Less expensive – ACH transactions cost less than paper transactions
- Expense Payments