direct deposit

noun
Updated on: 7 Nov 2017

Definition of direct deposit

:a method of payment in which money is transferred to the payee's account without the use of checks or cash

Examples of direct deposit in a Sentence

  1. Our employees are paid by direct deposit.

Recent Examples of direct deposit from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'direct deposit.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of direct deposit

1974


Financial Definition of DIRECT DEPOSIT

direct deposit

What It Is

Direct deposit refers to the electronic transfer of a cash payment into the recipient's bank account.

How It Works

Direct deposit is a method of payment where a paying party, such as an employer or government agency, electronically transfers a payment in cash from its bank account into the bank account of the payee. Salaries and tax refunds are examples of payments commonly made through direct deposit.

Why It Matters

Directly deposited money "clears" automatically, that is, it is immediately available for withdrawal, and does away with the need for and inconvenience of a paper check.


DIRECT DEPOSIT Defined for English Language Learners

direct deposit

noun

Definition of direct deposit for English Language Learners

  • : a way of paying someone so that the money is sent directly into the person's bank account without the use of checks or cash


Seen and Heard

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