Start a direct deposit authorization form to authorize a third (3rd) party, such as your employer, to send money to your bank account.
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Why are you creating this Direct Deposit Authorization form? To Create a New Authorization To Cancel a Current AuthorizationLast Update August 27th, 2024
Electronic Salary Transfer
Payroll Direct Deposit Authorization
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Table of Contents:A direct deposit is an electronic transfer of funds into a bank account. The party making the payment is known as the “payer”, and the party receiving the funds is called the “payee”.
This type of transfer does not involve any physical or paper checks and requires the use of a network that allows deposits to be made between banks. These electronic networks are known as automated clearing houses (ACH).
Due to the fact that direct deposits are made electronically, accounts are quickly credited, and it is not usually necessary to wait a long time for the money to clear.
However, to enable a third party to make this type of transfer to your bank account, you must authorize them to do so through a Direct Deposit Authorization Form.
Financial templates like a Direct Deposit Form are typically required when receiving payroll earnings, disability benefits, or other types of subsidies and payments. When used by employees to receive their salary, the document is also known as an:
The type of direct deposit form you use will depend on the bank which manages your account.
This document will gather all the required details, including reference information such as identification numbers, to permit a third party to directly send money to your account.
The most common bank direct deposit forms are listed below:
Direct deposit authorization consists of a payee authorizing a payer to transfer funds into the payee’s account.
By using this form, the party transferring the funds will have all the necessary information to correctly carry out the direct deposit through their own bank.
Direct Deposit Authorization Forms must include specific information to make it easy for the payer to transfer the funds, and for the payee to recognize who made the deposit. Therefore, your Direct Deposit Authorization Form should include the following information:
To create a reliable foundation for your document, try one of LawDistrict’s free Direct Deposit Authorization templates. These templates can be quickly filled in with step-by-step instructions and specialized advice.
Setting up a direct deposit is a relatively simple process when using a pre-prepared authorization template. All you need to do is fill in the necessary information and confirm the deposit amounts before submitting it.
You can then have a professional review the template to make sure there are no errors.
It’s also important to note that sometimes the party transferring the funds will also require you to submit a voided check (checking account) or a deposit slip (savings account) to ensure that the account is valid.
If you or your company will be making the deposit, then you will need to confirm all the direct deposit information on the authorization form, as well as the identification of the payee.
Then you will be able to make the deposit through your or your company’s bank account.
When creating a Direct Deposit Authorization Form for the first time, it can often help to first see a real example to better understand how to structure and complete your own. Check our direct deposit authorization example below to get a clearer idea of how your final document should look like.