What is the process called that allows individuals to have their payments directly deposited into their account?

The process that allows individuals to have their payments directly deposited into their account is known as direct deposits. This method is commonly used by employers to pay employees and by government agencies to distribute benefits.

Direct deposits provide a convenient and secure way for individuals to receive their payments without the need for paper checks, which can be lost or delayed in the mail. Funds are typically available more quickly with direct deposits, enabling better cash flow management. This method utilizes electronic banking systems to transfer funds directly into the recipient's bank account, making it efficient and reliable.

While wire transfers, ACH transfers, and payment processing all involve moving money electronically, they serve different purposes. Wire transfers usually apply to sending large sums of money quickly, often internationally. ACH transfers refer to a broader category that includes direct deposits and other types of electronic payments, while payment processing is a general term for how transactions are handled, including everything from authorization to settlement.