Posted by FLNOTARY45 on 5/10/07 9:53am
Msg #189659

Direct Deposit?

I did a signing for Nexus Signing Solutions last night. They said they pay by direct deposit...I'm about to fax over the form. Any thoughts before I do?

Reply by dwortham/nc on 5/10/07 10:03am
Msg #189661

OT- Has the enrollement fee for this company paid off in your opinion or is it a waste? Thanks for the reply.

Reply by FLNOTARY45 on 5/10/07 10:07am
Msg #189662

Yeah, they are paying $100 for the signing.

Reply by PL on 5/10/07 10:22am
Msg #189664

If it were me

I'd set up a sub account just for DD transactions. Once it was deposited just move it over, I'd be leary of giving someone you don't know acess to your main account.

Reply by DebbieT on 5/10/07 10:34am
Msg #189670

Re: You do not

have to use that form of payment. I told them that I would rather have a check sent and they said no problem. Really nice people to deal with.

Reply by PAW on 5/10/07 10:39am
Msg #189671

Huh?

Giving someone your account and routing numbers for direct deposit isn't giving them any access to your account, just the ability to deposit funds directly into it.

How many checks have you written and given to absolute strangers? Usually, there's more info on your check than on the Direct Deposit forms.

From http://www.electronicpayments.org/individuals/in.direct-deposit.php:

Direct Deposit is the most widely used electronic payment. In 2005, 4.4 billion payments were made using Direct Deposit, a 5.1 percent increase over the previous year. As many as 145 million Americans use Direct Deposit to receive their pay or government benefits.

More than half of federal tax refunds are received through Direct Deposit (52 million in 2005, a 7 percent increase over 2004). And close to 80 percent receive their Social Security benefits through Direct Deposit.

Did you know that Direct Deposit has been around for almost 40 years? It has a proven record of success - 97% of people who get paid via Direct Deposit are satisfied with it.

Reply by PL on 5/10/07 10:44am
Msg #189672

I too am satisfied with Direct deposit

from Uncle Sam and those I know. This company wants your SSAN along with other info, that I don't feel comfortable sending. I like the other person above will take a check to begin with, until I get that warm and fuzzy.

Reply by PAW on 5/10/07 11:33am
Msg #189681

SSAN???

That certainly isn't necessary for a direct deposit and I agree, I wouldn't provide that either. I would have no problem giving them my EIN and they can deposit any check directly into my business account.

Reply by Becca_FL on 5/10/07 11:01am
Msg #189678

Re: Huh?

If they can put it in they can take it out. I once had a problem with an employer during a merger. Never again.

Reply by PAW on 5/10/07 11:36am
Msg #189683

Re: Huh?

They cannot make withdrawals(**) without your permission. As I said, it isn't any different than providing a check to someone. They have just as much information, if not more, to make a demand check and present it to the bank.

(**) They can make a reversal on a deposit. But they can't legally take out more than they put in.

Reply by Gerry_VT on 5/10/07 1:59pm
Msg #189713

Re: Huh?

If I recall correctly, the information I provide to companies doing direct deposit is the same as the information I would have to provide for automatic withdrawls (such as utility payments). So the company doing direct deposit would have the necessary information to make withdrawls too, although that would be unauthorized and presumably illegal. PAW is correct to point out that the same vulnerabity exists with personal or business checks, which is why I send cashier's checks or money orders to people or companies that I don't have full confidence in (like E-Bay purchases).

Reply by Becca_FL on 5/10/07 3:08pm
Msg #189724

Sorry, Paul. You're wrong. I know this first hand.

Consider yourself lucky because it's never happened to you.

Reply by PAW on 5/10/07 3:20pm
Msg #189726

Re: Sorry, Paul. You're wrong. I know this first hand.

What did I say that was wrong? I didn't say they couldn't do it, I said they couldn't legally do it. And if they did do it, I hope you filed a complaint through your financial institution as it probably involved interstate commerce and violation(s) of the Electronic Fund Transfer Act.

Reply by Becca_FL on 5/10/07 5:19pm
Msg #189752

Re: Sorry, Paul. You're wrong. I know this first hand.

Just because it's against the law doesn't mean it won't happen, if that were the case we wouldn't need Jails or Prisons. Tell me, when has the law stopped a crook?

My dear Grandfather used to say " a lock keeps an honest man honest, but it won't keep a crook out."

BTW, I did get my money back + fees, but it was such a headache I'd rather not deal with the situation again. To each his or her own.

Reply by jba/fl on 5/10/07 1:28pm
Msg #189703

If they can put it in, they can take it out.

That is true.
Certainly not a method I would use, unless I set up receiving acct. for immediate transfer to main.

Reply by PCasey/CO on 5/10/07 1:51pm
Msg #189711

Re: Huh?

The direct depositor also has the right to remove the funds that they have direct deposited. I used to work in a payroll/Human Resources function and if, for instance, someone quit unexpectedly or was fired the payroll dept could recall the direct deposit as long as there was enough money in the account at the time of the transaction.

I would agree with setting up a sub-account of some type. Do the deposit and immediately move to your regular account.

Reply by BrendaTx on 5/10/07 12:47pm
Msg #189699

Re: If it were me--I agree, PL...

Though I would hardly call myself paranoid about these matters, I think your way is the safest. When you give out your bank account info for direct deposit, it is the same information you give to a company to allow it to debit your bank account. Oh sure, you might be giving them permission when you give them the debit info, however, not every one is honest about how they handle that information.

We had a few years of easier times when we did not have to worry about cyber criminals tapping into our money with numbers...however, things have gone the other way and for now, there are not safeguards to 100% protect our bank accounts when we have given out our numbers. I predict there will be one day...just not right now.

Reply by PAW on 5/10/07 1:48pm
Msg #189709

Re: If it were me--I agree, PL...

You also have to take into consideration that the transfer is not coming from the company, but from their financial institution to your financial institution through the ACH wire system. You are not giving anyone access to your account any more so than when you give the Wal-Mart cashier access when you hand them a check.

Direct Deposit/Direct Payment is extremely safe since it is carried out only by accredited and approved financial institutions and monitored by the Fed. This is not the same thing as bill payment and online payments through companies like PayPal and LowerMyBills. Those companies are not financial institutions and thus are not regulated like banks.

I would not allow any company to send my "pay" to a PayPal account, only to a federally registered bank from a federally registered bank.

Reply by Bob_Chicago on 5/10/07 10:58am
Msg #189675

I would be leary. That is the same info that Nigerians ask..

for in their famous letters.
I do not like giving out bank account info unless I am comfortable
with the party requesting it.

Reply by swilliams on 5/10/07 11:35am
Msg #189682

They have payed me by direct deposit for about 3 signings.

I have never had any problems with them. They gave me the option for standard check or direct deposit. They offer it as a convenience.

Reply by FWP/WA on 5/10/07 11:49am
Msg #189688

comical...

It makes me giggle inside when I hear someone being paranoid about paying via e-check/electronic withdrawal/direct deposit.

The owner of the company I work at in the daytime is the worst. He won't let me pay the payroll taxes to the IRS electronically, because he doesn't want the government to have "their hands in our account." Also, he refuses to let me institute direct deposit for the employees, so we do it old school, with an old fashioned check.

Now that I think about it, I think my dad had direct deposit in the Army back in the late 60's-early 70's.

Reply by PL on 5/10/07 12:04pm
Msg #189691

Paranoia and gut feelings have served me well.

I am not a Luddite, I do almost all my banking electronically with folks I know like Uncle Sam and others. So I'm not talking about Uncle Sam here, I'm talking about an unknown enitity who wants access to my account. You may find this quite humorus, but until I know someone and their practices: I'll take my payment through snail mail, this practice seems to be most prudent to me.

Reply by Christine/NJ on 5/10/07 12:16pm
Msg #189693

Re: Paranoia and gut feelings have served me well.

Is a Paypal account safer or the same risk? Maybe setting up one of those might help. Just a thought.

Reply by Bob_Chicago on 5/10/07 12:39pm
Msg #189698

Concur with PL. Maybe because I have been dragged.....

into the computer age kicking and screaming, I have not
gotten into electronic payments to any great extent.
I let my insurance co do it, because I get a price break.
Even though you get your money faster, this auto deposit and
payment deal is, to my mind, a way to save money for the company.
Way cheaper and faster for them to get in and pay out money electronically.
As to PayPal, I hear on the news about every other week about someone
hacking into their system.
Boy , if you can't trust the USPS for reliable, prompt service, who
can you trust?

Reply by Charles_Ca on 5/10/07 5:52pm
Msg #189766

Re: You are right Bob, but you forgot the bane of the banks:

FLOAT. The institutions just love to eliminate float and electroncs helps them just that. I like float and they just keep working to take it away from me. I use PayPal and many of my tenants pay by direct deposit or I give them deposit slips to a special account I maintain just to collect rents, I don't have any other business and I sweep it just as soon as a deopostit comes in. With the free checking that my bank keeps offering there are many ways to use the acounts. BTW is the other stuff from Malnati's just as good?

Reply by desktopfull on 5/10/07 6:13pm
Msg #189775

Re: comical...

You wouldn't find it so comical when you go to make a payment and find out that a company like paypal has ripped you off for $780.00 and then it took you 6 mos. to get ebay to give it back even after they admitted it was a mistake.

Reply by maggieost on 5/10/07 6:43pm
Msg #189784

Not Comical

Never ever will I use paypal again, they locked up my account over 1 year ago for something another family member did (did not pay his monthly bill) over 3000 miles away. They have thus far refused to release my last $500.00 in my account until I or the other person pay them there money- which none of this is my responsiblity.. But they do send you and the IRS notification that they are paying you interest, no matter the fact that you can not remove it.

NEVER ever use paypal unless you want to wake up and find your money locked up and no one will respond to you emails

Reply by desktopfull on 5/10/07 6:54pm
Msg #189793

Re: Not Comical

Per recommendation of lawyer: Only if you open a separate bank account for making the deposits and then as soon as possible transfer the money out of that account to your regular account. Leaving only the minimum amount required to keep the account open.