A direct deposit authorization is referred to funds paid through a bank transfer into a bank account rather than cash; this requires an electronic network in order which allows access to deposits to go through between banks.

The name that this network is referred to as is Automated Clearing House; this is due to the fact that funds are transferred electrically, the recipient’s account is automatically credited, therefore there is not a need for the money to clear. With the recent developments many organisations are adapting to using this as the way they pay their employees, suppliers, taxes and clients.