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Why is my direct deposit late?
If your payday falls on a weekend or Federal Holiday, your direct deposit could be delayed. Other reasons for a delay could be related to the electronic transfer system by either the payer or your bank. A tax return payment is somewhat unpredictable and is based on the processing time of your file. Other causes of late payments include technical glitches, exception holds, and more, all of which we’ll discuss in this article.
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What is direct deposit?
Direct deposit is a way to electronically receive payments owed to you by having the money directly deposited into your checking or savings account. Funds that can be direct deposited into your bank account include payroll, Social Security benefits, child support, and tax refunds.
How does direct deposit work?
- Your employer sends payroll information to your bank. Your employer will ask you to complete a direct deposit authorization form with your name, social security number, and your bank account information.
- Automated Clearing House (ACH) network processes the payer information. This is the primary network used throughout the United States for electronic funds transfer (EFT). With ACH, funds are electronically deposited in financial institutions and payments can be made online.
- Your bank receives payment. Your bank will receive the funds from the ACH network.
- Payment hits your account. Based on the time that the funds reach your bank, the money will be deposited into your account.
Why your direct deposit hasn't gone through
Direct deposit is one of the quickest ways to receive payment from an employer, state, or federal agency such as the Social Security Administration and the Internal Revenue Service. However, there are times when direct deposit may not go through or may be delayed.
It's the weekend or holiday. If your payday falls on a bank holiday, this could delay direct deposit. However, most payments are made through the ACH (Automated Clearing House) network which provides that paydays that otherwise would be on a weekend or holiday are paid on the prior Friday.
Cutoff times. Credit unions and banks have cut-off times when they stop processing transactions for that day. If the sender of the payment misses the cutoff time, the payment will be delayed.
Technical glitches. There are times when either the payer or the receiving financial institution may experience a technical issue that results in delayed payment processing.
Exception holds on deposits. A financial institution may put a hold on a direct deposited check in some situations, such as if the check is for a large amount, the account is new, the account has been overdrawn, or the bank has a concern about the ability to collect the funds from the payer.
Account start date. Setting up a new direct deposit requires administrative work on the part of the payor and your credit union or bank. Initial setup could slightly delay your first direct deposit payment.
What to do if your direct deposit hasn't gone through
If you’re wondering, “why hasn't my direct deposit gone through yet?”, you’re not alone.
There are times when a direct deposit is not been made in the expected timeframe.
Here’s what to do if your direct deposit is late:
Contacting your employer. Call or email your payroll department or the department at which you first enrolled in direct deposit. This is a good time to let them know you haven’t received payment. If this is the first payment after you enrolled in direct deposit, you can verify that they have the correct information for your credit union or bank account. Ask if the payment was sent and when you can expect payment.
Contact the credit union or bank. Contact the credit union or bank that you designated to receive the deposit, to see if they received the funds but have not released the money into your account.
FAQs
How do I set up a direct deposit?
Fill out the direct deposit form provided by the payer (your employer or other source of payment). The form may be a physical form or online. Be prepared to provide your name, address, and Social Security number.
What time does direct deposit hit?
Funds that are direct deposited into a bank account typically go through before 9 a.m. but can arrive as early as midnight. The variability in the amount of time it can take is largely due to the payer’s timeframe to release funds. All banks have a process for receiving and disbursing direct deposit funds to the account holder.
Can you use direct deposit without a credit union or bank?
If you cannot open a checking account due to bad credit or other factors, you may purchase a prepaid debit card and have funds deposited onto the card. You can buy a prepaid card online or in person at a retail store.
Does direct deposit go through on weekends?
No, the ACH network doesn't process payments on weekends or holidays when the Federal Reserve is closed. For a payday that is scheduled weekend, most payers will release the payment, so payment is made the Friday before a holiday.
Is direct deposit safe?
Yes. Paper checks can get misplaced in your home, lost in the mail, or lost on your way to the bank.
Is direct deposit worth it?
Yes, direct deposit is typically worth it because you get your money faster and save time by not having to drive to your bank to deposit the check.
What is early direct deposit?
Early direct deposit, also called early pay, is a free service provided by some financial institutions as a courtesy to their customers. Qualifying deposits are released as soon as the funds are received by the recipient’s bank. With early pay you may get paid up to two days before your scheduled payment date.
Why savvy consumers choose CU SoCal
For over 60 years CU SoCal has been providing financial services, including mortgages, Home Equity Loans, HELOCs, car loans, personal loans, credit cards, and other banking products, to those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County.
Please give us a call today at 866.287.6225 today to schedule a no-obligation loan consultation with a CU SoCal Member Services specialist.
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