Direct deposit

Direct deposit is a process where someone who is going to be paid on a recurring basis, such as an employee, or a recipient of a government entitlement or benefit program such as social security is sent the payment owed to them into their checking or savings account. The reasons for doing this include:

Instant access to the funds via an ATM or check card.
A check can be lost or stolen anywhere between the sender and the intended payee.
Payments made electronically can be less expensive to the payor, typically electronic payments may cost around 25¢ (US) vs. up to $2 to generate, print and mail a paper check.

In the United States, the Automated Clearing House (ACH), operated by the Federal Reserve Bank, handles all interbank transfers, including direct deposit and direct withdrawl.