Direct Deposit is a payment method wherein the money or funds are deposited directly into an individual’s bank or credit union account. This type of payment method can be utilized by people who have a bank or credit union account. This is considered preferable to a traditional payment method because it is much quicker, seamless, and secure. This is why many organizations and companies offer this as an option to their constituents. You may download our available samples here on this article. You also have the option to look at our available Deposit Forms that are used as proof that funds were deposited into a bank or credit union account.
Generic Direct Deposit Authorization Form
Direct Deposit Signup Form
Payroll Direct Deposit Authorization Form
Direct Deposit Authorization Form in PDF
Employee Direct Deposit Authorization Form
Advantages of Direct Deposit
Direct Deposit is becoming more widely considered because of how convenient it is. Contrary to having to go to the bank to deposit or cash a check, the funds are deposited directly into the payee’s bank account. This goes hand in hand with the electronic access of your bank account to provide an easier and timely access of your funds. It also allows the money to be available on time or even sooner than that of the regular method of payment. This is because the process is electronic, and allows the funds to be available even before banks open.
For employers, direct deposit is preferable because it saves them the time and money that is necessary in preparing, printing, and distributing actual paychecks. Not only is this task tedious and time-consuming, it is costly as well. A company would do well to do away with such a process and opt for the electronic option instead. For employees, it is a life-saver because it reduces the risk of paychecks being lost, missing, or stolen, which can be such a huge problem to deal with.
With these advantages, it is no surprise that the use of Direct Deposit Forms has been increasing over the years.
Vendor Direct Deposit Authorization Form
Direct Deposit Authorization Form Example
Student Direct Deposit Authorization Form
Direct Deposit Authorization Form in Word Format
Types of Direct Deposit Authorization Forms
- Employee Direct Deposit Authorization Form – This is used hand in hand with Payroll Direct Deposit Forms for the payroll department in a company or organization to set up direct deposit for the salaries of employees who wish to have it set up. This is already utilized by more than half of the employees in the United States.
- Vendor Direct Deposit Authorization Form – This is for payment to vendors for certain services or products received, such as monthly services. This is also utilized by companies with suppliers so that payment for their invoice or orders can be made electronically.
- Student Direct Deposit Authorization Form – This type of Direct Deposit Authorization Form is used by educational institutions for payment of wages or expense reimbursement for student employees or working students.
The key to the proper use of Direct Deposit Authorization Forms is knowing what kinds to use and what information should be included. Each form should include the payee’s personal and financial institution information. This would include the bank name and address, bank account name and number, and the bank routing or transit number. There are times when a void check has to be presented to substantiate the payee’s financial institution information, such as in employee or payroll direct deposit.