Banks That Deposit Paychecks Early

Banks That Deposit Paychecks Early – Everyone loves a payday. But if you’re one of the 12 percent of U.S. workers who aren’t paid by direct deposit — more than 20 million — Payday can be a major inconvenience. Faced with long lines at banks, lost checks in the mail, and mandatory holding periods when you deposit checks, your actual payday won’t arrive until next week. In this article, we will explain why direct deposit is the best way to get paid. We’ll also show you how early direct deposit can help you get paid two days in advance. Here’s Why You Need Direct Deposit #1: Convenience checks are a hassle. When you receive a paper check, you have to take time out of your busy day to go to the bank or ATM. If you use Mobile Deposit, you still have to wait 3-5 business days to get full access to your funds. Are you feeling sick or enjoying your holidays? Too bad – with a paper check, you have to wait until you get back to the office to get paid. For many, the extra wait time adds to the stress of paying bills. Fortunately, direct deposit is a better solution. When you pay by direct deposit, the money is received in your bank account on payday. There is no waiting period or additional waiting time. Whether you’re in the office or on vacation, your money shows up in your account instantly. Do you have a savings account? Perfect – ask your employer to split your paycheck between your checking and savings accounts. With direct deposit, you can truly “set it and forget it.” Once you’re settled, you’ll never have to worry about spending your paycheck funds again. Reason 2: Secure checkout is a major security risk. They can be lost, stolen or even forged. In 2016, US banks faced $2.2 billion in deposit account fraud. 35% of them were due to check fraud. This is a fraudulent check worth up to $770 million! If you are paid by paper check, there are several ways to put your paycheck at risk. For example, imagine the number of people who have access to your check. Office visitors, office contractors, even bartenders who come too close to your belongings. And, if you get your paycheck in the mail, there are many people who can fraudulently access your mailbox. With the right skill or audacity, a sophisticated thief can try to redistribute your paycheck. Fortunately, most companies and banks will try to work with you to replace a lost or stolen check. However, the extra time it takes to retrieve a lost check can be troublesome — especially if you have bills to pay. On the other hand, direct deposit is the safest way to receive money. Since payments are electronic, there are fewer hands between your employer and your bank account. If there’s a problem with your direct deposit, you have an electronic record of every payment. You’ll also have access to past pay stubs long after you receive your paycheck. Reason 3: You get paid faster (…with early direct deposit, you get paid faster) Direct deposit is simply not convenient. It also ensures that you get paid quickly. When you are paid by check, you are not paid on the day. That’s because you have to wait an additional 3-5 business days for the bank check to clear. If you’re one of the unlucky crowd who gets their paycheck in the mail, you’ll have to wait another 2-3 days for the post office to get it. (That is, unless they lose your check in the mail…) That’s a lot of extra time to use your own money. With direct deposit, you get paid on payday. Your bank doesn’t take extra time to process your paycheck — it processes your electronic payment right before your payday. (We’ll discuss how this works below.) That means no extra waiting time or worrying about your check getting lost in the mail. With direct deposit, your funds are available to you immediately. Get paid quickly with direct deposit in advance. Axos Bank Express Direct Deposit is an automated facility that delivers your paycheck two days in advance. When the bank processes your payment it allows you to access your funds. That means you can take the stress out of paying your bills first. To find out how Early Stage Direct Deposit can help you manage your money smarter, visit Direct Deposit here. But how does direct deposit work? While direct deposit seems immediate — after all, your paycheck funds appear in your bank account immediately on payday — it’s a complex interaction between multiple financial institutions. Here’s a simple explanation of how direct deposit works: Step 1: Set up direct deposit – As an employee, you start the direct deposit process by providing your employer with your bank information. Many employers provide their own direct deposit forms during new employee orientation. If not, you can get it directly from your bank. (Exos Bank Customers – Download your Direct Deposit Form here). Step 2: Send Payment Notices – Before payday, your employer will send pay stub notices to their bank (or Originating Financial Institution Depository (ODFI) in financial stigma). These payment instructions are sent through data files containing routing numbers, bank account details and transaction amounts. Step 3: Pass Payment Information – When the employer’s bank receives the data file, the information is forwarded to the Automated Clearing House (ACH). ACH is a network of financial institutions that process electronic transfers between banks. Because banks process many electronic transactions, they never send ACH payments in person. Instead, the bank waits until it receives all ACH documents for the day before forwarding them to the ACH operator. Step 4: Pass payment information (again) – When the ACH operator receives your employer’s payment instructions, it will coordinate all of its payment instructions to ensure that each payment is sent to the correct bank. Like your employer’s bank, an ACH operator receives a large volume of transactions involving multiple banks. Step 5: Payment Processing – After your bank receives the payment instructions, it will start the payment process. Basically, it’s between your bank, your employer’s bank, and ACH to make sure your employer has the funds to clear the transaction. This process will take 3 – 5 working days. Once the payment clears, your bank will deposit your paycheck so you can enjoy your hard earned money. Here’s How Early Direct Deposit Works Early Direct Deposit allows you to access your paycheck funds faster than most traditional banks. But how does it work? Basically, Early Access Direct Deposit works the same as regular Direct Deposit, except for one small (though important) difference – the payment process. (This refers to step 5 in the previous section.) After the bank receives the payment instruction via ACH, it will deposit your payment check after processing the payment. However, with early stage direct deposit, the bank deposits the check before processing the payment. Basically, the bank “believes” that the employer’s payment will be clear. For example, suppose your colleague Matt has a basic checking account at ABC Bank. However, you have an Axos Bank Essential checking account that includes Express Direct Deposit. Friday is pay day at your office. To ensure that paychecks arrive on time, your employer will send payroll instructions to the bank on Monday morning. Then, after completing the routing instructions via your employer’s bank and ACH, your bank and Matt’s bank will receive the payment documents on Wednesday. Then, both the banks start processing the payment instructions. But while Matt waits for his paycheck to arrive, Axos Bank puts the money into your account so you can use your funds immediately. Instead of getting paid on Friday, you get paid on Wednesday – two days ahead of your poor co-worker Matt. More questions about direct deposit… Is direct deposit safe? Yes! Because direct deposit is an electronic payment, it goes from your employer to your bank account with fewer hands. This is the safest way to pay. With direct deposit, can I pay on the weekend? Generally, no. Business Day Direct Deposit Process. So if your payday falls on a weekend, your bank will usually make the funds available on the Friday before payday or the following Monday (unless it’s a federal holiday). What if my salary falls on a holiday? Many employers promote paid days to ensure that the holiday does not affect pay. However, regardless of your employer’s payroll option, direct deposits are only processed on business days. This means you will get your salary the day before payday

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