When Americans need to send a friend or family member money, they usually write a check, initiate an electronic funds transfer, or send money through a digital payment provider. While all these options can get the job done, they come with varying drawbacks.
If you’ve transferred money through payment apps before, directly depositing the money into their account seems like a simple and secure option. But if you haven’t, then you may be asking, can I make a direct deposit to someone else’s account?
The answer is, yes. When you think of direct deposits, you’re basically going back to banking basics. You walk into a bank, approach the teller, give the person’s banking details, then deposit the money into their account. Direct electronic deposits are yet another option, that almost every financial institution now offers. These can be initiated through the company’s website or mobile app.
Cash Deposits
In most cases, you are able to walk into a bank and deposit cash into someone else’s checking account, but the entire process isn’t always so simple. As mentioned above, not all banks allow cash deposits. The reasons for not permitting such transactions are primarily associated with risk management. Cash deposits have a higher likelihood of being used for money laundering and fraud by criminals, as cash deposits don’t leave much paper trail, making it hard to trace the source of the funds.
While preventing fraudulent activities is the primary concern, cash deposits are expensive for banks to process. Ultimately, that means the person will likely be charged a sizable amount for the deposit, especially if large amounts of money are involved. We won’t dwell on how you’ll be putting yourself at risk by walking around with wads of cash on your person; fortunately, there are other more convenient and safer options to achieve the same result.
ACH Deposits
The reason why you might opt for cash deposits over regular electronic transfers or writing a check is the processing time. With the latter, it may take a couple of days for the cash to clear, which may not be an option in case of an emergency. But for regular, everyday transfers, technology provides a much more convenient option in the form of Automated Clearing House (ACH) deposits. In this case, you can deposit funds directly into someone’s account electronically. To clarify, you are not cutting out the middle man, which is the financial institution, but you eliminate the need to visit a physical location to make a transaction, as the whole process can be done digitally through a website or app, such as Cashero, where there is little to no fee. Instead of waiting days for an ACH transaction to clear between two different banks, sending money from one Cashero wallet to another Cashero wallet occurs immediately. Whether it’s friends, family, or contract freelancers, your money gets to the people who need it as soon as possible.
Making transfers with the Cashero app
As long as you have funds available in your Cashero wallet, you can send a transfer to any other Cashero wallet. The best part is the transfer occurs instantaneously!
Conclusion
Direct cash deposits and ACH deposits are convenient, practical, and safe ways to send money to a recipient. While some banks do offer cash deposits, others may have stipulations and conditions, such as you having an account at their bank before allowing you to make a direct deposit to another account.
This is why the most convenient way to initiate a direct deposit is via an ACH transfer through your financial institution’s website or mobile app. The process is simple, and all you’ll need is the recipient’s account details. Once you have that information, you’ll just need to enter the amount you wish to deposit, and the transfer will begin. With Cashero you can send money both locally and globally, as well as withdraw funds in any of the available currencies. Additionally, you can hold Euros, American Dollars, or British Pounds in your Cashero wallet. Having these three currencies available in your wallet means your money is held in a more stable currency than most others, providing protection from volatility in the currency markets.
Also read: The Meaning of Living Paycheck To Paycheck
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As of the date of publication, the information contained on this page is deemed to be factually accurate for all terms of conditions, features, and fees. Changes made to Cashero’s terms of conditions, features, or fees after the publication of this content may not be accounted for.
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The Cashero App is now available for download in both the Apple App Store and Google Play Store, though not all features are currently functional. Cashero has not yet officially launched.
