To send a direct deposit to someone’s account, you need their bank routing number, account number, account type, and the name on the account, entered through your bank’s online portal, a payroll service, or accounting software that connects to the Automated Clearing House (ACH) network. Once you authorize the transfer, standard ACH payments settle within one to two business days, and faster options can move funds the same day or within seconds. The process is simple, but a wrong digit or the wrong account type can send money to a stranger or bounce the payment back several days later.
Information You Need From the Recipient
Four pieces of information make an ACH credit possible:
- The nine-digit routing number that identifies the recipient’s bank. It appears on the bottom left of a paper check, before the account number.1American Bankers Association. ABA Routing Number
- The account number for the specific account at that bank.
- The account type, checking or savings. Mislabeling this is enough to cause the payment to be returned.
- The recipient’s name as it appears on the account. Nacha, the body that governs ACH rules, has published formatting standards for the name field to improve matching and help banks flag suspicious activity.2Nacha. ACH Operations Bulletin 2-2024 – Voluntary Formatting Standard for Individual Name Field
Employers setting up payroll typically collect this on a signed authorization form that also captures the employee’s legal name, address, and the portion of pay to be deposited. One rule catches some employers off guard: federal law prohibits requiring a worker to open an account at a specific bank as a condition of employment.3Consumer Financial Protection Bureau. Electronic Fund Transfers FAQs Many states allow you to require direct deposit, but the employee chooses the bank.
Verifying the Account Before You Send
Sending to the wrong account is the most common ACH mistake, and clawing money back is far harder than getting the setup right. Three verification methods catch errors before real money moves.
Micro-deposits. Your bank sends two small deposits, usually under a dollar each, to the recipient’s account. The recipient confirms the exact amounts, proving they control the account. Expect two to three business days.
Prenotification. A zero-dollar test entry travels through the ACH network to confirm the account exists and can accept deposits. If the receiving bank doesn’t return the prenote within the standard return window, you can send a live payment starting on the third banking day after the prenote settles.4Nacha. ACH File Overview Prenotes are optional but sensible for large or recurring payments.
Instant verification. Newer API-based services confirm in seconds that an account is open and can accept ACH entries. Nacha says these services can validate roughly 95% of accounts, with micro-deposits or prenotes covering the remainder.5Nacha. Account Validation Frequently Asked Questions
Skipping verification is where most problems start. A transposed digit can route to a valid account belonging to someone else, and recovering that money depends on the other person’s cooperation.
Where to Send the Deposit From
The right platform depends on what you’re paying and how often.
Your bank’s online portal or mobile app is the simplest route for individuals and small businesses. You enter the recipient’s details once, and the bank pushes the payment through the ACH network. Standard transfers usually cost little or nothing.
Payroll services like ADP, Gusto, or Paychex are built for employers. They calculate tax withholdings, file payroll taxes with the IRS, and distribute pay to multiple employees on a schedule. They charge a monthly fee plus a per-employee cost that varies by provider and feature set.
Accounting software such as QuickBooks ties outgoing payments directly into your ledger. These platforms verify your identity during setup to comply with federal anti-money laundering rules, then serve as a hub for outgoing ACH files.
Whichever you use, the system connects to one of two ACH operators, the Federal Reserve or The Clearing House. Nacha writes the rules; the operators do the sorting and settlement.6Nacha. How ACH Payments Work
Submitting and Confirming the Transfer
Once the recipient’s details are in, the actual submission is quick. Open the payment or transfer section, enter the dollar amount, and pick a payment date. Most platforms show a summary screen for a final check before you confirm.
Expect multi-factor authentication at this step: a one-time code, a push notification, or biometric verification. That extra layer matters because your confirmation carries legal weight. Under the federal E-SIGN Act, clicking “confirm” can serve as a legally binding authorization, the same as signing a paper check.7Office of the Law Revision Counsel. 15 USC Chapter 96 – Electronic Signatures in Global and National Commerce
After you confirm, the platform generates a transaction ID. Save it. If anything goes wrong downstream, that number is how your bank identifies the specific transfer.
How Fast the Money Arrives
Speed depends on which service level you use and when you submit.
Standard ACH
Most direct deposits travel through standard ACH and settle within one to two business days. Your bank bundles your transaction with others, sends the batch to an ACH operator, and the operator forwards each entry to the recipient’s bank. Settlement runs only when the Federal Reserve’s settlement service is open, so weekends, federal holidays, and overnight hours don’t count.8Nacha. The ABCs of ACH When payday falls on a Saturday, industry practice is to pay Friday.
Same-Day ACH
Same-Day ACH settles on the same business day if you submit before one of three daily cutoffs. Submission deadlines fall at 10:30 a.m., 2:45 p.m., and 4:45 p.m. Eastern Time, with settlement at 1:00 p.m., 5:00 p.m., and 6:00 p.m. respectively.9Federal Reserve Financial Services. FedACH Processing Schedule Each Same-Day ACH payment is capped at $1 million.10Federal Reserve Financial Services. Same Day ACH Resource Center Your bank may charge a small fee for same-day processing.
FedNow
The FedNow Service, launched by the Federal Reserve in 2023, settles in seconds and runs around the clock, including weekends and holidays. Unlike ACH, each FedNow payment is processed individually rather than in a batch.11The FedNow Service. FedNow vs Same-Day ACH – Speed, Security and Irrevocable Transactions The trade-off is finality: FedNow payments are irreversible once sent. As of early 2026, roughly 1,656 financial institutions participate,12Federal Reserve Financial Services. FedNow Participating Financial Institutions so both banks have to be on the network for it to work.
When a Transfer Is Returned
Not every deposit lands. The receiving bank has two banking days from the settlement date to return a standard ACH entry. Common return reasons include:
- No account or unable to locate account: the number doesn’t match any active account at that bank.
- Incorrect account type: you sent it as checking but the account is savings, or vice versa.
- Unauthorized transaction: the account holder tells their bank they never authorized the transfer.
Returned funds go back to your account within a few additional business days. Some banks charge a small fee. The usual fix is to correct the account information and resubmit.
Reversing a Payment You Sent by Mistake
If you send a duplicate, the wrong amount, or pay the wrong person, you can request a reversal, but the window is short. Under Nacha rules, a reversal must be transmitted so that it reaches the recipient’s bank within five banking days after the original entry’s settlement date.13Nacha. ACH Network Rules – Reversals and Enforcement
Reversals are only permitted for specific errors:
- A duplicate payment.
- A payment sent to the wrong recipient.
- A wrong dollar amount.
- A payment dated incorrectly.
A reversal is not a guaranteed clawback. The recipient’s bank processes it, but if the recipient has already withdrawn the money, the reversal can fail, and you’d have to recover the funds directly from them. Verification before sending is more reliable than any fix after.
Sending to Someone Who Receives Federal Benefits
If you’re trying to send a direct deposit to someone whose account already receives Social Security, military retirement, veterans’ benefits, or other federal payments, note that those government payments run on their own required channels. Federal law requires virtually all federal payments to be delivered electronically,14Office of the Law Revision Counsel. 31 USC 3332 – Required Direct Deposit and the government stopped sending paper checks for most federal benefits after September 2025, except in limited hardship cases.15Go Direct. Go Direct Home Recipients without a bank account can receive payments on a Direct Express prepaid debit card. Changes to a Social Security direct deposit are made through the recipient’s my Social Security account.16Social Security Administration. Social Security Direct Deposit Your own ACH credit to that person’s private bank account is a separate transaction and follows the ordinary steps above.