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Old 02-09-2011, 09:08 PM
Markxxx Markxxx is offline
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When Did "Direct Deposit" Of Checks Start

I was wondering when did "direct deposit" of checks start? I think the governmental agencies like SS and the VA started direct depositing checks long before most commerical businesses did, but I could be wrong.

It seem in my memory around 1995 was the first year I recall working where direct deposit was common. Before then I can't remember my employers asking me for that option.

So what is the history of direct deposit of paychecks and governmental type checks (SS, VA, etc)
Old 02-09-2011, 09:14 PM
kunilou kunilou is offline
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My employer started doing it sometime in the late '80s. IIRC there were a lot of screwups in the first years and a lot of employees were sour on it for awhile.
Old 02-09-2011, 09:28 PM
RealityChuck RealityChuck is offline
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I've had a direct withdrawal from my checking account since 1974. I would assume direct deposits were available at that time, too. My father-in-law had his paycheck deposited directly into his checking, and had been doing it for years before I met my wife in the early 80s.

Government direct deposit was a bit later.
Old 02-09-2011, 09:29 PM
Fir na tine Fir na tine is offline
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In 1970 Direct Deposit was already fairly common. As more and more employers switched to payroll service bureaus - as opposed to someone in their back office writing checks - it became very popular in business. It was available for Treasury checks but they didn't get real aggressive in promoting it until the 80's.
Old 02-09-2011, 09:42 PM
tomndebb tomndebb is offline
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The first job I had that offered direct deposit was in 1978. I was pretty sure that my Dad had his check deposited directly, (by General Motors), several years prior to that.
Old 02-09-2011, 10:35 PM
Dano83860 Dano83860 is offline
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My dad had his federal pay check set directly to the bank while I was still in high school. That would put it around 1970.
Old 02-10-2011, 09:08 AM
BrotherCadfael BrotherCadfael is offline
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My first career job started in '82, and I was offered direct deposit. In my entire professional career, I've only received three paychecks, each time while the paperwork went through when starting a new job. Every subsequent payroll was direct deposit.
Old 02-10-2011, 09:18 AM
Lanzy Lanzy is offline
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My first one was in 1976.
Old 02-10-2011, 11:50 AM
LSLGuy LSLGuy is offline
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As above. The Feds were doing it in the mid 70s, as were giant corporations. It became commonplace for smaller businesses during the 80s. Not sure when it began.
Old 02-10-2011, 12:17 PM
Earl Snake-Hips Tucker Earl Snake-Hips Tucker is offline
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The first hits start in Google News Archives in 1974/1975. There may be some earlier than that, but that looks like the major signpost.
Old 02-10-2011, 06:16 PM
Dewey Finn Dewey Finn is offline
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Originally Posted by Earl Snake-Hips Tucker View Post
The first hits start in Google News Archives in 1974/1975. There may be some earlier than that, but that looks like the major signpost.
The first hit I found in Google News from 1975 is from a bank offering "direct deposit" of Social Security checks. The catch is that you had to arrange for the check to mailed directly to the bank and they'd make sure the funds were available the date you were supposed to receive it. But I found an article dated May 29, 1975 from a Maine newspaper saying that by 1976 the funds would be transferred electronically. (It makes sense that the Treasury Department would lead this effort, since, per the article, the government made 44 million payments monthly.)

Last edited by Dewey Finn; 02-10-2011 at 06:16 PM.
Old 02-10-2011, 05:37 PM
janeslogin janeslogin is offline
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My first to a bank was in the 80s but I had money put in a credit union perhaps the early 60s.
Old 02-10-2011, 05:43 PM
Pai325 Pai325 is offline
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My husband had his paycheck direct deposited starting around 1980. Where I work it has been offered for only about 10 years. It is no longer offered to new employees; it is required.
Old 02-10-2011, 05:47 PM
AshenLady AshenLady is offline
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Location: New Jersey, USA
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I remember the late 1980's, before my kid was born. Someone forgot to take the tape to the bank and the whole Radiology Department at the University of Pennsylvania had their checks all bounce. What a fiasco. The University had to cover all the bounced checks and fees when it bounced all the doctors' checks. Their payroll was separate because they got paid once a month. The rest of the peons got paid weekly.


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