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rated:
Just want to share that Citibank in some way treats deposit from
Emigrant Direct as Direct Deposit. My evidence is circumstancial.
Anyway, this is what I figured:

I have a Citi EZ Checking and last month I got 150 thankyou points,
which means I have 5 products with them. I know I have CD, online
payment, Debit Card and the checking account, and the only deposit
into my checking account was from Emigrant Direct. One month earlier
the only deposit was an IIT from my local bank. I guess it was counted as direct deposit, too! My wife didn't have any deposit and she got only 75 thankyou points. Otherwise she had everything I had.

Any other thoughts?

rated:
Citi counts PayPal as DD. I know that because I have checking, savings, online bill payment, debit card and use PayPal to push money into the checking account every month. As a result, I get 150 points, which are the Thankyou Points for using 5 services.

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Bump for updates to initial posting and quick summary for recent postings. Thanks everyone for your contributions!

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Conversation with Penfed today:

Q: What would count as direct deposit for purposes of waiving the fee for not having $500 in the checking account (no other prompting)?

A. "It MUST be CODED as a direct salary, gov't, or other deposit. An ACH push will NOT do it."


I haven't confirmed this by trying it, since I believe it and don't want to sweat getting the $7.50 fee charged.

rated:
I get this on my online acount , does this count as DD??
Type: ACH Credit
Transaction Description: PAYPAL ;DES=TRANSFER ;ID=XXXXXXXXXXXX DATE: XXXXXX;INDN:XXXXXXXXXXXX
please tell me how to identify diret deposit? i did a transfer from Paypal to BofA

rated:
Direct Deposit must be a payment not a transfer, even though both payment and transfer may use the ACH method. The keyword here is "payment." (The deposit of funds directly into a bank account as a form of payment.)

Direct Deposit is the electronic transfer of a payment from a company or organization into the checking or savings account of an employee, retiree, taxpayer, or shareholder. The payment can be divided among several different accounts and, in many cases, between different financial institutions.

The most popular application of Direct Deposit is for payroll, but it can also be used for many other types of payments, including:

- Annuities
- Bonuses and commissions
- Dividend and interest payments
- Pensions
- Travel expense settlements
- Tax refunds
- Social Security or other government payment

Direct Deposit is a major ACH (Automated Clearing House) application used to automatically deposit recurring payments into an individual's account.

The ACH is a centralized clearing facility operated by the Federal Reserve. The ACH receives debits and credits from sending banks and distributes them to other Automated Clearing Houses for distribution to receiving financial institutions. The receiving financial institutions receive paperless entries from the local ACH and post them to the accounts of its depositors.

ACH Standard Entry Class Code

The Standard Entry Class (SEC) code is a three letter code that identifies the nature of the ACH entry. (See below.)

ACH process:
It is important to note that in accordance to the rules and regulation of ACH, no financial institution may simply issue an ACH transaction (whether it be debit or credit) towards an account without prior authorization from the account holder (known as the Receiver in ACH terminology).

An ACH entry starts with a Receiver authorizing an Originator to issue ACH debit or credit to an account. An Originator can be a person, the gas company, your local cable company, or your employer. Depending on the ACH transaction, the Originator must receive written (ARC, POP, PPD), verbal (TEL), or electronic (WEB) authorization from the Receiver.

Once authorization is acquired, the Originator then creates an ACH entry to be given to an Originating Depository Financial Institution (ODFI), who can be any financial institution who does ACH origination. This ACH entry is then sent to an ACH Operator (usually the FED) and is passed on to the Receiving Depository Financial Institution (RDFI), where the Receiver's account is issued either a credit or debit depending on the ACH transaction.

The RDFI however may reject the ACH transaction and return it to the ODFI with the appropriate reason, such as there was insufficient funds in the account or the account holder said the transaction was unauthorized. An RDFI has a prescribed amount of time to perform returns, ranging from 2 to 60 days from the receipt of the ACH transaction.

ODFI's receiving a return of their ACH entry may re-present the ACH entry one more time for settlement. Again, the RDFI may reject the transaction. After which, the ODFI may no longer represent the transaction via ACH.

Standard entry class code:
The Standard Entry Class (SEC) code is a three letter code that identifies the nature of the ACH entry. Here are some common SEC codes:

ARC: Accounts Receivable Entries. Checks received by a merchant through mail or drop box and are presented as an ACH entry.

CCD: Corporate Cash Disbursement.

DNE: Death Notification Entry. Issued by the Federal Government.

POP: Point-of-Purchase. A check presented in-person to a merchant for purchase is presented as an ACH entry instead of a physical check.

PPD: Prearranged Payment and Deposits. Used to credit an account. Popularly used for payroll direct deposits.

RCK: Represented Check Entries. A physical check that was presented and was returned because of insufficient fund may be represented as an ACH entry.

TEL: Telephone Initiated-Entry. Verbal authorization by telephone to issue an ACH entry such as checks by phone.

WEB: Web Initiated-Entry. Electronic authorization through the Internet to create an ACH entry such as PayPal.

XCK: Destroyed Check Entry. A physical check that was destroyed because of a disaster can be presented as an ACH entry.

rated:
ksabid said: Yeepeee! Got my Chase checking account statement, and there it was: DD from ING. ING sent two small deposits to verify.

Those two small deposits are "payments" from ING (similar to bonuses, etc.). ING did not transfer funds to Chase. It did pay you two small amounts for the purpose of verification. That is why they showed as DD from ING. If you transfer from your ING account to Chase in the future, then they will be transfers because you are not having ING pay you those amounts. You are merely transferring funds.

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From ING Direct website...They say It is the same system used for direct deposits ("it" means ACH system. That is, both TRANSFER and PAYMENT transactions go through ACH, not that ING Direct applies DIRECT PAYMENT/DEPOSIT codes to their money transfers):

When your account is opened, we note where you have your checking account, then when you want, you can easily move money between your ING Direct account and your checking account. Your checking account is what we call our 'linked' account.

ING Direct makes transactions using the Automated Clearing House (ACH). It is the same system used for direct deposits. You set up the link so you are the only one that has access to your money. When you want to move money to or from your ING Direct account, you simply go online or call to request the transaction. Generally transactions take 2 to 3 days to be completed.

rated:
ciba said: ArthurDent said: Bank of America checking treats ACH transfer originating from ANY another account as a direct deposit. I confirmed this information last time I was at a branch.

Be careful. If a company sends you a CCD (corporate ACH credit) it may not count.

Direct Deposit is a subset of ACH transactions. The PPD code shows that it is a consumer transaction. Without physically reviewing the transaction, I'm not aware of any easy way for a bank to see a transaction is NOT a direct deposit.

A good question to ask when opening your account is, "does it need to be direct deposit, or simply a PPD credit?"

Great post! I had my first transaction from FID BKG SVC LLC MoneyLine to BoA. This is how it was credited:
FID BKG SVC LLC DES:MONEYLINE ID:XXXXXXXXX XXXXX INDN:FIRSTNAME M LASTNAME CO ID:XXXXXXXXXX PPD CREDIT ON 08/11/2005 $10.00

I guess from previous posts, PPD CREDIT may count as DD. I doubt if a BoA customer rep. would be able to give a definitive answer to this technical question (that we can take it to the bank).

rated:
Today I stepped by my friendly BoA branch office to inquire about their definition of DD. After some back office research, the bank worker told me any "electronic credit" will do (if it is done regularly to waive fees). I guess she meant any ACH deposit but I didn't get too technical with her

rated:
AugustFour said: ksabid said: Yeepeee! Got my Chase checking account statement, and there it was: DD from ING. ING sent two small deposits to verify.

Those two small deposits are "payments" from ING (similar to bonuses, etc.). ING did not transfer funds to Chase. It did pay you two small amounts for the purpose of verification. That is why they showed as DD from ING. If you transfer from your ING account to Chase in the future, then they will be transfers because you are not having ING pay you those amounts. You are merely transferring funds.


Can anybody confirm this?

rated:
Didn't read the thread but if Presidential requires a direct deposit to avoid monthly fees (which I believe is the case), then an ACH does work with Presidential Bank.

I have my direct deposit going to Virtual Bank and then ACH'ing to Presidential Bank since the beginning of 2005. No assessed fees on Presidential Bank.

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zgenerale said: Didn't read the thread but if Presidential requires a direct deposit to avoid monthly fees (which I believe is the case), then an ACH does work with Presidential Bank.

I have my direct deposit going to Virtual Bank and then ACH'ing to Presidential Bank since the beginning of 2005. No assessed fees on Presidential Bank.

This from their site:

Note: Internet Checking PLUS requires an electronic monthly deposit of $200 or more from payroll, annuity, pension or third-party pre-authorized transfer.

I believe this "third-party pre-authorized transfer" is equivalent of ACH fund transfer you are referring to. Another point is that they may or may not audit each individual account manually for this requirement. I have no idea of their internal audit system, or how they detect ACH deposits (codes/amounts) in each account.

rated:
Fidelity Money Line transfer to BoA is posted as:

Transaction Description:
FID BKG SVC LLC DES:MONEYLINE ID:Xxxxxxxxx XXXXX
INDN:FIRSTNAME M LASTNAME CO ID:XXXXXXXXXX PPD REF:XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Note PPD in the 2nd line. Also, note the definition of PPD below. I am assuming BoA accepts such ACH transactions as qualified Direct Deposits even if they are not Direct Deposits by definition (see below). BoA possibly looks only for code PPD:

PPD - Prearranged Payment and Deposit Entry

Direct Deposit - Direct Deposit is a credit program that transfers funds into a consumer's account at the Receiving Depository Financial Institution. The amount deposited can be from a variety of products, such as payroll, interest, pension, dividends, etc.

Also, note the following quote from http://www.fms.treas.gov. Here, apparently PPD is equated with Direct Deposit:

The Office of Personnel Management presented its proposal to send child support payments electronically in the PPD (direct deposit) format and transmit remittance data ...

I am assuming whenever you see PPD in a transaction description, you can then safely assume the transaction will qualify (pass) as a Direct Deposit.

rated:
Does Citi count Capital One's ACH push as DD?
Anyone knows?

rated:
lsufanatic said: shalein said: What is a cash edge transfer.Is it also an online bank?
Thanks


CashEdge is an online application used by various banks and credit unions to facilitate transfers between institutions as part of the institution's online banking functionality. I'm not sure which institutions use CashEdge, or something similar, but some (like my CU) allow transfers free of charge, subject to certain daily and monthly limits. For instance, my CU will allow free 3 business day transfers up to $2000 daily (only complication is that the transfer will count against you daily limit each day until it clears, so it is really a limit of $2000/3 days), and up to $25,000 monthly. I know ETrade Bank and VirtualBank use CashEdge or a similar application to allow these transfers as part of their online functionality as well. Bank of America offers it as well, although they charge a service fee on outgoing transfers.

Hope this helps!

Any idea if deposits via MoneyLine used by Fidelity Investments are treated as Direct Deposits similar to CashEdge?

FYI:
Electronic Funds Transfer: Fidelity MoneyLine® is a service that enables me to electronically transfer money between my bank account and my Fidelity brokerage account. Electronic funds transfers are processed through the Automated Clearing House (“ACH”). My bank must be an ACH member for me to use this service, and one common name must appear on both my bank and Fidelity accounts. The minimum EFT transaction is $10 and the maximum is $99,999. EFTs are normally completed within three business days, and credits to my account are subject to a four day collection process.

Thanks

rated:
What is the difference between ING transfer and ACH push transfer? According to AugustFour's Aug/04/2005 8:46 PM post they sound similar. Can someone please explain the difference?

rated:
gundukm said: What is the difference between ING transfer and ACH push transfer? According to AugustFour's Aug/04/2005 8:46 PM post they sound similar. Can someone please explain the difference?
ING transfers (push and pull) use CashEdge (CashEdge is an online application used by various banks and credit unions to facilitate transfers between institutions) to move funds. All such transfers are accomplished using ACH (Automated Clearing House, a nationwide American electronic banking network).

rated:
Thanks for your reply. But does that mean any bank that treats ING transfer as DD will also treat ACH push transfer as DD as well? (because ING is using ACH anyway. If not, I am all confused about this)

rated:
gundukm said: Thanks for your reply. But does that mean any bank that treats ING transfer as DD will also treat ACH push transfer as DD as well? (because ING is using ACH anyway. If not, I am all confused about this)
This is an ongoing debate: See http://www.fatwallet.com/forums/messageview.php?start=0&catid=52&threadid=432086 . Many banks use CashEdge as a fund-transfer platform. Apparently, transfers made on this platform are considered Direct Deposit. Other institutions may use other platforms (for example, Fidelity Investments uses MoneyLine: http://www.moneyline.fr/en/page_8.htm ). This platform may also qualify for DD (but I'm not 100% sure). All platforms use ACH to execute transfers. ACH by and in itself is not a determinant for DD. The platform using ACH is.

rated:
I have Citibank and I get the following:

AUTHORIZED TRANSFER
PAYPAL VERIFYBANK

AUTHORIZED TRANSFER
IN G DIRECT DEPOSIT

AUTHORIZED TRANSFER
AMERITRADE ACH MICRO

Obviously ING comes up at Direct Deposit (or is it a deposit from IN G Direct?)...but I'd much rather know if, despite the wording they use, Paypal is also. I know this forum says yes, but since it doesn't actually say it in the description, I'm a little confused. Help is greatly appreciated! Thank you!

rated:
mikesay98 said: I have Citibank and I get the following:

AUTHORIZED TRANSFER
PAYPAL VERIFYBANK

AUTHORIZED TRANSFER
IN G DIRECT DEPOSIT

AUTHORIZED TRANSFER
AMERITRADE ACH MICRO

Obviously ING comes up at Direct Deposit (or is it a deposit from IN G Direct?)...but I'd much rather know if, despite the wording they use, Paypal is also. I know this forum says yes, but since it doesn't actually say it in the description, I'm a little confused. Help is greatly appreciated! Thank you!

It looks like [ING Direct] Deposit. I believe the bank interprets the transaction based on the internal code in software (invisible to us) rather than the visible description.

rated:
So for sure PayPal is still considered Direct Deposit for Citibank? Thanks for the help...

rated:
Now that chase and bank one have merged, is there any change in the erstwhile bank1, but now converted to chase entries? Anyone with experience?

rated:
BOA told me several months ago that the direct deposit they want to waive fees is salary. It's even marked as salary on the statements. Any others won't qualify to waive fee.

rated:
matt1 said: BOA told me several months ago that the direct deposit they want to waive fees is salary. It's even marked as salary on the statements. Any others won't qualify to waive fee.
The same BoA told me a month ago (at the branch) that any ACH deposit qualifies as a direct deposit! As I said before, these CSRs have no clue as to the exact qualification parameters for a direct deposit since it is handled internally through code.

rated:
AugustFour said: matt1 said: BOA told me several months ago that the direct deposit they want to waive fees is salary. It's even marked as salary on the statements. Any others won't qualify to waive fee.
The same BoA told me a month ago (at the branch) that any ACH deposit qualifies as a direct deposit! As I said before, these CSRs have no clue as to the exact qualification parameters for a direct deposit since it is handled internally through code.


I wouldn't think so, but are there any minimum dollar amount restrictions to count as a DD at BoA? Or, is it just a checkbox that the computer puts next to your account that you had some DD activity?

Thanks

rated:
penguinknot said: AugustFour said: matt1 said: BOA told me several months ago that the direct deposit they want to waive fees is salary. It's even marked as salary on the statements. Any others won't qualify to waive fee.
The same BoA told me a month ago (at the branch) that any ACH deposit qualifies as a direct deposit! As I said before, these CSRs have no clue as to the exact qualification parameters for a direct deposit since it is handled internally through code.


I wouldn't think so, but are there any minimum dollar amount restrictions to count as a DD at BoA? Or, is it just a checkbox that the computer puts next to your account that you had some DD activity?

Thanks

I don't have the answer, and these questions are too technical for a CSR to answer. Readers on this forum have reported that any ACH qualifies (but I haven't seen any report on the minimum $).

rated:
Anyone have any idea about US Bank? I just got an offer from them saying they'd give me $100 to open a checking with direct deposit and I'd love to take advantage of the offer. Thanks!

rated:
mikesay98 said: Anyone have any idea about US Bank? I just got an offer from them saying they'd give me $100 to open a checking with direct deposit and I'd love to take advantage of the offer. Thanks!
What is US Bank's URL?

Thanks!

rated:
www.usbank.com

Do banks normally list whether it's counted or not on their websites?

rated:
Mixxed experience with E-Trade bank. My wife and I both signed up for promotions back in January ($250 new acct bonus with direct deposit, bill-pay, etc.).

E-Trade counted our ING Direct deposits as "Direct Deposits" online, but refused to give us promotional credit, saying that the deposits from other financial institutions didn't count.

Push came to shove (after quoting the terms of the original offer), they finally decided to give us credit...

rated:
mikesay98 said: I just got an offer from them saying they'd give me $100 to open a checking with direct deposit and I'd love to take advantage of the offer. Thanks!

Is there any link to the offer? or just a targeted letter?

rated:
Targeted I would think...I got a letter in the mail and there's no promotional code or website to go to. But it's pointless if I can't figure out if they consider any of these Direct Deposit...

rated:
I've done $1 DD's to BofA and Citibank -- they've worked fine in the past...

rated:
I send 2 $5 deposits a month from my ING account to Citibank account just so I can get the thank you points. I been 1200 thank you points a month for the last 2 months. I used to get 900 thank you points before i started sending $5 bucks to Citibank so I know Citibank computer thinks ING is a direct deposit because with direct deposit I have 7 products thus yeilding me 1200 thank you points.

rated:
mikesay98 said: Targeted I would think...I got a letter in the mail and there's no promotional code or website to go to. But it's pointless if I can't figure out if they consider any of these Direct Deposit...
Then I assume you need to take it to a nearby branch, or send them a copy of it?

rated:
grrarrgh said: I've done $1 DD's to BofA and Citibank -- they've worked fine in the past...
DD initiated where from?

Thanks!

rated:
sorry -- obvious mistake -- cashedge and employer

rated:
mikesay98 said: Targeted I would think...I got a letter in the mail and there's no promotional code or website to go to. But it's pointless if I can't figure out if they consider any of these Direct Deposit...
ING Direct seems to be a safe bet to initiate DD's.

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