American Gateway Bank's Blog

Payments at the Speed of Life

May is Direct Deposit and Direct Payment Month, but what does that mean for us as everyday people?

Direct Deposit is the direct movement of funds from an employer's account to an employee's account electronically. Funds are available first thing in the morning on the day you are paid…no trips to the bank, no waiting in line, no waiting for check holds; even better you can use your debit card to purchase gas and morning coffee with that deposit on your way in to work!

For example, Bill didn't have time to stop by the bank on his lunch break because he was attending an awards program for his son. But he wasn't worried about having money for the weekend because Bill had signed-up last month for direct deposit so his paycheck was already in his account. He would get some cash back at the grocery store when he picked-up drinks for the trip and they could leave early in the morning with no hassle.

Direct Payment is the pre-authorized debit of funds usually to pay a recurring bill. Most people find Direct Payment convenient for recurring bills with the same invoice: life insurance, mortgage, security system, or car insurance. Having these bills set-up for recurring direct payment makes for easy accounting and one never forgets to pay timely.

An example: Sue forgot to pay her credit card bill and it will cost her a $25 late fee if she doesn't call before 4 pm today. The representative mentions that she can sign-up for automatic payments: her credit card company can automatically debit the minimum due or a designated amount monthly. "Can I do it over the phone?" Sue asks. The representative assures that she can, and better yet she will still make it her yoga class. Now she will really be able to relax and enjoy the class!

These are just a couple of examples of how Direct Deposit and Direct Payment work in our everyday lives allowing us to enjoy life! Don't get left behind, sign-up for direct deposit and direct debit today and make sure your payments move at the speed of life.

For more information on Direct Deposit and Direct Payment, contact American Gateway Bank at support@amgb.com.

 

Posted by Rebecca Borders at 10:36

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