Make managing your payroll easier and lower processing costs with Merchants Bank Direct Deposit for business. When you use Direct Deposit, you replace your paper checks with low cost, electronic payments and provide another employee benefit.


What is Direct Deposit?

Direct Deposit is the electronic transfer and deposit of employees’ net pay to their bank accounts anywhere in the U.S. through the Automated Clearing House (ACH) system. The majority of the nation’s workforce is paid by direct deposit. 


How Does Direct Deposit Work?

  • You (or your payroll processor) provide the bank with your employees’ net pay information through our Online Banking
  • We process ACH credit entries based on your instructions. Many of our customers find the most efficient system is to generate ACH files through Online Banking.
  • Your employees’ net pay is deposited automatically into their accounts when the bank opens on pay day and is immediately available as cash.
  • Your account is debited for the total net pay amount. 


Benefits of Payroll Direct Deposit for Business

  • Reduce costs associated with printing, signing, distributing, reconciling, and storing checks.
  • Simplified accounting by no longer needing to maintain idle balances or a separate payroll account.
  • Eliminate the possibility of lost, delayed, stolen, and forged checks.
  • Increase employee productivity since employees no longer need to leave work and deposit checks.
  • Provide a service many employees have come to expect.


Which businesses should use Payroll Direct Deposit?

Our Direct Deposit for business is a great fit if your business:

  • Wants to streamline payroll and reduce exposure to check fraud 
  • Want to eliminate costs associated with maintaining and reconciling a separate payroll account
  • Has employees who travel frequently and/or go to the bank on company time to deposit their pay checks 


To get started, contact a Treasury Management Specialist or Commercial Banker. Discover the Merchants Bank difference.


Additional Resources:

From paying your employees and vendors to cash liquidity, we offer solutions to maximize your cash flow and make your business more efficient. Learn more about our other Treasury Management tools for disbursement.


* Subject to approval