What is described by the term 'direct deposit'?

Direct deposit refers to the electronic transfer of payments directly into a bank account, typically used for payroll or government benefits. This method allows employees to receive their paychecks automatically without needing to physically deposit a check. It is widely utilized because it streamlines the payment process, reduces the risk of lost or stolen checks, and improves efficiency for both employers and employees.

The concept of direct deposit can be contrasted with receiving a physical check. While options that mention checks focus on traditional methods of payment, they do not capture the modern, automated essence of direct deposit. Additionally, although some options mention services related to banking, they do not address the specific and clear purpose of direct deposit, which is both a convenience and a secure method for handling regular income.