What is Direct Deposit?

Direct Deposit enables you to receive a portion or all of your paycheck or government payment automatically into your PayPal balance.

Direct Deposit is commonly used to transfer an employee’s salary. However, it may also be used for federal or state government benefits or payments, like Social Security payments, unemployment, tax refunds, the Child Tax Credit, or stimulus checks.

If you enroll in Direct Deposit with PayPal, money lands in your PayPal Balance account. This avoids the need for physical deposits either by standing in line at a bank or by depositing a physical check. You, as the Payee, can automatically deposit all or a portion of your paycheck, government benefit or payment, or other payments into your PayPal Balance account.

Once you enroll in Direct Deposit, your Payer’s bank may try to verify your account using micro entries before initiating a deposit for security reasons. You may see two small credits, typically less than $1, and one offsetting debit entry denoted with an ACCTVERIFY description in your PayPal Balance account transaction history. You may be asked to manually enter these amounts on the Payer’s website.

Here’s how to access your transaction history:

• Go to your Activity.
• Select or search for your payment. You can also click Filters to narrow your search by status or transaction type.

Some of the primary benefits of Direct Deposit include:

• Once set up, money moves seamlessly from Payer to you, the Payee.
• There are no limits, no fees, and it’s free to set up with PayPal.
• It’s economical for employers and eco-friendly by avoiding printing physical checks.