Direct Deposit: A Convenient Payroll Processing Service

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Direct Deposit: Convert your net payroll to Direct Deposit today.

Payroll checks are out. Direct Deposit is in.

Direct Deposit is the electronic transfer of a payment from an organization into the checking or savings account of an employee, retiree or other individual.

Perfect for companies and organizations of any size, e.service® Direct Deposit from Vanco Services is widely used for payroll, pensions and expense reimbursements. There are many tangible benefits for both the organizations that make payments by Direct Deposit and the individuals who receive them. Organizations using e.service® Direct Deposit enjoy reduced costs and greater security while employees receiving their pay via Direct Deposit don't have to go to the bank to deposit their checks or wait for checks to clear before gaining access to their funds. It's no wonder Direct Deposit via the Automated Clearing House (ACH) Network is the most widely used form of electronic payment. This website discusses using Direct Deposit for payroll but it is used in the same manner for pension payments and expense reimbursements.

Benefits

Discover the many benefits of e.service® Direct Deposit.

FAQs

Get answers to frequently asked questions about Direct Deposit.

How It Works

View the steps involved in making a Direct Deposit.

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e.service® Direct Deposit

Direct Deposit is most commonly used for payroll, but it can also be used for annuities, bonuses, commissions, pensions, travel expense settlements, tax refunds, and social security or other government payments.

Benefits Back to Top

Reduces Check Printing and Storage

By switching payroll to Direct Deposit you will have fewer checks to print and store.

Simplifies Account Reconciliation

Your account statement will show a single item for the total amount of Direct Deposit transactions versus individual check amounts.

Increases Security

Direct Deposit payments have far less risk than paper checks which can be lost, stolen, forged or altered.

Eliminates Manual Check Preparation

Eliminating manual check preparation translates into reduced administrative costs.

Saves Money

Direct Deposit transactions typically cost less to process than paper checks.

Reduces Errors

Reduced handling means reduced potential for errors. Direct Deposit requires less manual handling at every stage.

Allows You to Pre-fund for Variable Payrolls and Vacation Periods

If your payroll varies from period to period, simply pre-fund the account with an amount sufficient to cover the estimated total net payroll. All excess funding is returned to your organization's bank account on payday. This popular option also allows payroll managers to pre-fund the account in advance when necessary to accommodate their own schedules.

Eliminates Employee Trips to the Bank

Employees paid by Direct Deposit no longer have to go to their bank during business hours to deposit or cash their checks.

Permits Immediate Access to Funds on Payday

There is no waiting for checks to clear with Direct Deposit. Funds are available to employees at the opening of business on payday.

Assures Getting Paid Even When Absent on Payday

Since deposits are made directly into an individual's bank account, there is no need to be at work or even in town on payday. This is an important benefit that allows employees to stay on top of their personal finances while they are ill, travelling or on vacation.

Businesses can save anywhere from $0.50 to $1.25 per payment using Direct Deposit instead of checks. Source: ElectronicPayments.org

Green Payment Solutions: Direct Deposit is part of a broader effort to encourage the use of electronic payments in order to take enormous amounts of paper out of the wasted cycle and reduce the need to transport paper bills, statements and payments. Source: ElectronicPayments.org

How It Works Back to Top

1.	Train
	After signing up for Direct Deposit, a Vanco implementation specialist will schedule a brief, personalized training session over the phone. Client service representatives will provide you with ongoing assistance. All transaction activity will be managed from Vanco's online Service Center.

2.	Enroll Employees
	Employees complete a standard enrollment form authorizing your company or organization to electronically transfer payments into their checking and/or savings accounts. Vanco will supply you with a master copy of the form.

3.	Enter and Fund Total Net Payroll
	Four (4) business days prior to payday, you will determine the total net payroll, log into Vanco's online Service Center and enter the total net payroll amount. If the exact amount is not known, you will enter an estimate sufficient to cover the anticipated total net payroll. Then, three (3) business days prior to payday, Vanco will debit your organization's bank account for the sum you have entered. Your bank account is debited at this time to assure that good funds will be available to pay your employees at the open of banking hours on payday.

4.	Enter Individual Payments
	One (1) to four (4) business days prior to payday, you will log into Vanco's online Service Center and enter the exact amount to pay individual employees. You can make a separate entry for each employee or submit a single file containing the information for all employees. Your Vanco implementation specialist will help you determine what entry date and method is best for your organization.

5.	Pay Employees
	A net payroll amount is transmitted via the Automated Clearing House (ACH) Network into the accounts designated by employees on their authorization forms. If you had entered and funded an estimated total net payroll, all excess funding is returned to your organization's bank account on payday.

6.	Confirm
	Your organization should provide employees with a paper or electronic statement of the Direct Deposit. The statement should include the same information your organization provides on a paycheck stub including all deductions and the net pay amount.

Frequently Asked Questions Back to Top

Will our employees really want Direct Deposit?

Direct Deposit is safe, convenient and saves employees the time they previously spent going to the bank and waiting in line. It may also give some employees access to their money much earlier than with paper check deposits. For these reasons, the popularity of Direct Deposit is growing rapidly.

Can an employee's net pay deposit be divided between accounts?

Yes. It is quite common for an employee to want a deposit made to both a checking and a savings account.

What is the minimum number of employees required to use Direct Deposit?

Vanco has several clients using Direct Deposit for as few as 5 to 10 staff members. We are small business specialists. By combining transaction activity from thousands of sources Vanco is able to economically provide a Direct Deposit solution to organizations of every size.

Do I need special software in order to convert our payroll to Direct Deposit with Vanco?

No. All you need is a computer with Internet access. There is no software or equipment to purchase and maintain. Data files can be easily exchanged with whatever software you are currently using.

How do employees know when their pay has been deposited?

Most employers print payment advice either on a form or on a payment stub that is identical to what is received with a traditional paycheck. They show the amount deposited into the account and how much was taken out for taxes, insurance and other items.

What is the risk of fraud with Direct Deposit?

Payroll checks are among the most frequently forged checks. An article from the Institute of Management and Administration states, "One of the easiest ways to prevent check fraud is not to issue checks at all." Direct Deposit eliminates the risk of lost, stolen or altered checks.

Get Started Back to Top

It's Easy To Get Started!

Click here to be contacted by a Vanco Services sales representative.

You may also call 800-774-9355 and ask for a sales representative or send us an email at Sales@VancoServices.com

Vanco Services, LLC • 12600 Whitewater Drive, Suite 200 • Minnetonka, MN 55343

800-774-9355 (Phone) • 952-983-8665 (Fax) • Sales@VancoServices.com

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