Setting up direct deposit could save you a lot of time and frustration, especially if you often lose or misplace important items like your paychecks. A misplaced check delays payment and puts you at risk for fraud. Although banks put holds on checks to reduce the risk of check fraud, scammers can still make missing checks a hassle.

If someone deposits your check into their bank account, you’ll likely need to prove you did not cash it. Investigation into the fraud can further delay the process of collecting your paycheck. Plus, some employers might be reluctant to initiate an investigation to resolve the problem.

Keep Your Money Safe and Secure With Direct Deposit

Likewise, paper checks are subject to damage, such as water, fire, or simply ripping. Many financial institutions do not accept damaged paper checks. If this happens, you may need to ask your employer for another check.

You cannot damage an electronic transfer, even if your phone or computer breaks. You also cannot lose it. Banks and employers verify information when setting up direct deposit, and payments are automatic after the first successful transaction. 

You can use direct deposit for more than payroll and unemployment benefits. Social payment apps make it easier and safer to give and receive money from friends and family. 

The following are some of the most popular apps for sending and receiving money:

  • PayPal – The company monitors each PayPal direct deposit to prevent fraud, identity theft, and phishing. You can even use PayPal for payroll direct deposit, but it requires your Social Security number.
  • Venmo – Venmo direct deposit requires identity verification, but transfers between friends do not. Venmo provides the most privacy, since you can use a username instead of your email or phone number. 
  • Cash App –Cash App direct deposit uses routing and account numbers for payroll and government payments. But, like Venmo, you can create an account username rather than giving out your phone number, email address, or Cash App account numbers. Although cards are from Sutton Bank, Cash App direct deposit is responsible for the transactions.

  • Zelle – Zelle works with most U.S. banks to transfer money between accounts within minutes using just a phone number or email address. 
  • Apple Pay – Apple users can confidently send and receive electronic funds through the Apple Messages App on iPhones, iPads, and Apple Watches. The money transfers between Apple Wallets. Apple does not share information with third parties. 
  • Google Pay – Android users can send money using a name, phone number, email address, or QR code. Google also does not share users’ information with third parties. 

You receive money with an ACH direct deposit, and you give money with an ACH direct payment. The apps included in the list above place a security barrier between you and retailers, stores, and others. 

Some of the best security features they offer include the following: 

  • Payment notifications 
  • Protections to prevent you from sending money to the wrong person
  • Two-factor authentication
  • Shareable account details via QR code
  • Passcodes, fingerprint- and face-enabled protections

Direct deposit may also help you save money by reducing banking and late fees. Learn how setting up direct deposit could help you keep even more cash in your account next.