Payment information is sent to your bank: The ACH sends your payment file to your bank to be processed.The ACH processes the payroll file: An ACH operator reviews the payroll file for accuracy and ensures all payments are properly routed.Your employer sends payroll instructions to their bank: Before payday, your employer sends a payroll file to its bank containing employees’ bank account details and paycheck amounts.Here’s a step-by-step breakdown of how direct deposit works:
There’s also the role of The Automated Clearing House (ACH), the electronic funds-transfer system that facilitates transactions in the U.S. The exact timing of receiving your direct deposit depends on two main factors: your bank and your employer’s payroll software.
