While the ACH plays a role in this process, your employer and bank largely determine when you receive your paycheck. Once your bank receives your payment information, your payment is processed and credited to your account.
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.
