Unlike a paper check, you can’t lose your bank account or misplace your electronic funds. That’s why direct deposit is the safest way to get paid. You don’t have to worry about it getting lost on your way to the bank or falling into the wrong hands.
Using direct deposit also lowers your risk of being a victim of check fraud. If you lose your paycheck and someone else picks it up, he or she could fraudulently cash it and access your hard-earned money. Not only will you be out of an important paycheck, but sorting through the process of replacing your money could take days or even weeks.
If your paper check was lost or stolen, you would first need to try and prove that you didn’t cash it yourself. Your employer will not reissue your money without making sure you did not receive it.
The process of canceling your check, investigating the incident and reissuing a new one just further delays the time it takes to get your money. Paper checks are already slower than electronic deposits; why make it even worse?
Your employer might not be so willing to cooperate at first, either. The entire process utilizes many resources and could even cost the employer money. You may find it difficult to get your employer or the accounting department on board to help you resolve the issue.
Luckily, setting up direct deposit helps you avoid this mess in the first place.
If there are any issues with your direct deposit, it is much easier for you and your employer to identify the issue and resolve it. ACH direct deposit is a safe electronic transfer of money. Banks keep detailed electronic records of these transactions, which you can access as the account holder.
You can easily access your bank account on your phone, tablet, computer or other smart devices. Most banks even allow you to contest fraudulent activity right through an app. Following an electronic money trail is much easier than tracking down a paper trail.
Plus, you could always ask for a paper pay stub if you’d like to keep physical records for yourself. Most banks are happy to send you statements in the mail. You could also contact your employer about receiving paper pay stubs. It is always safer to choose direct deposit over a paper paycheck. If you’re someone who constantly misplaces documents or forgets where things are, setting up direct deposit could be the solution you’ve been looking for.