Direct Deposit Question

Discussion in 'Off-topic' started by FrontSight, May 17, 2017.

  1. FrontSight

    FrontSight Well-Known Member

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    My employer is forcing all employees to have direct deposit. I want to comply but this employer has had security issues in the past. A former accounting employee embezzled a couple of hundred thousand $ from company issued credit cards. I really don't want them to have my checking acc't # on file.

    Can they force us to have direct deposit?
     
  2. GAfirearmsReference

    GAfirearmsReference Weapons Law Booklet

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    sure. It's an "employment at will" state. If you don't like the method by which they pay you, you're free to leave.
    This is especially true when the company has a legitimate reason to stop using paper checks, which carry a huge potential liability for them (easy to counterfeit), not to mention higher costs.
    I'm old-fashioned. I don't think any business should mandate e-commerce only. Every business should accept cash, and checks.
    But people who think like me are getting fewer and fewer every year.
     

  3. rankhornjp

    rankhornjp Active Member

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    Open another account for just this purpose at your current bank and then set up an auto transfer to move the money each payday into your normal account. That way if someone gets your info and tries to steal your money they will only have your dummy account, which should have very little money in it.
     
  4. Scout706

    Scout706 Well-Known Member

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    +1 to Rankhorn

    Edit: it was eons ago, when I was Active Duty, that the .mil went to this. Heck, we had sailors that had NO BANK ACCOUNTS.
     
    Last edited: May 17, 2017
  5. codegeek

    codegeek codegeek reincarnate

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    +1 from me too. I transfer money all the time.
     
  6. UtiPossidetis

    UtiPossidetis American

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    That method is safe but the fees can get annoying. Double check the fees, talk to a banker, and see if there is a $0 cost method. Some folks will have a savings account and do so, but many allow only 4 withdrawals a quarter without fees and penalties. Good luck.
     
  7. Marine6212

    Marine6212 Active Member

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    look at Google wallet for doing the transfers, it's free so far!
     
  8. UtiPossidetis

    UtiPossidetis American

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    Is it insured and regulated by the FED? If not, no thanks - too much risk when there are lower risk alternatives. If it is, are they the pass-through or an actual FDIC insured?
     
  9. codegeek

    codegeek codegeek reincarnate

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    Fees for too many savings withdrawals is a Federal thing. Depending on his pay cycle, he probably wouldn't do more than 4 transfers a month. If that's a problem, just direct deposit into a checking account. None of my banks charge me fees for ACH transfers (which can't be more than $5,000 per transaction).
     
  10. Suburbbus

    Suburbbus Well-Known Member

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    I have had direct deposit with every employer since 1985. Never had a problem and will always have it where offered. Always went into checking account for myself and my wife.
     
  11. Scout706

    Scout706 Well-Known Member

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    FTFY

    Some have a Direct Deposit requirement to get the free account. PM sent to OP.
     
  12. psrumors

    psrumors Well-Known Member

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    I could not imagine NOT having direct deposit....never had an issue
     
  13. AtlPhilip

    AtlPhilip Proud GCO member.

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    This. Faster, easier, and more secure.

    Two things to remember. 1), Your full ACH info is on every check you have ever written to someone, including e-billpay. 2). Your employer will likely xmit your ACH info to the payroll company and destroy it.
     
  14. NTA

    NTA Well-Known Member

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    I use a lot of PayPal. Not really by choice, and I hate it. Hope Google or someone gets out in front of them.

    Some folks cannot get a bank account due to the data system all the banks now use to qualify their customers.
    Anyone who has ever tried, or worse, succeeded in beating a bank out of money is doomed.

    In the early days of direct deposit, the employer that required direct deposit would have a bank signed up to guarantee to open at least a restricted account.
     
  15. gsusnake

    gsusnake Token Liberal Hippie

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    Maybe a prepaid debit card? The fees can be high though.

    I work part-time at an employer that employs 3,000+ kids under 18 seasonally, most of whom don't have bank accounts. This employer offers a card through ADP, the payroll processor.
     
  16. 45_Fan

    45_Fan Well-Known Member

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    Maintain two checking accounts at the same bank so long as they let you move money between accounts at will with no fees.

    A much better question is what is the incidence of fraud or problems with paper checks vs direct deposit? In this day and age I question anybody that wants to hand me a check and won't do direct deposit or electronic payments.
     
  17. Bendrr

    Bendrr Active Member

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    Direct deposit is great and I wish I had it where I work. Now in the past I did have one problem at an employer who used it. The payroll company they used had a major malfunction and WITHDREW from everyone's accounts instead of depositing. Then for the next few days, while they tried to fix it, they deposited and then withdrew again. It was a mess and the company was on the hook for quite a few NSF fees. Thing about direct deposit is, you can't set it up to prevent withdrawals. I tried and my bank said no; other employees got the same answer from their banks.
     
  18. Scout706

    Scout706 Well-Known Member

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    What kind of cave do you work in? Withdrawals? yeah, sounds like two checking accounts are in order. And maybe a lawsuit. Which explains the OP's concerns.
     
  19. Rugerer

    Rugerer GeePeeDoHolic

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    What kind of controls are on ACH such that no one loses money from copies of his check numbers all over the place? At least I've never heard of money getting lifted that way.