How to Discontinue Direct Deposit

Direct deposit is the deposit of funds into a checking account automatically by a payer. Direct deposit is commonly used by companies and organizations. Many banks offer banking discounts for customers who maintain a checking account with direct deposit. Stopping a direct deposit is a process initiated by the payee.

• Ask your employer to stop direct deposit. Employers can provide the necessary forms to change or stop a direct deposit. Depending on your employer, this may take up to one pay period to process.


• Close the account. Direct deposits cannot be made to a closed account. The sender of the money will receive an error message that the direct deposit was not processed.


• Talk with a representative at your bank. The discontinuation of direct deposit is typically initiated by the employer or organization, not the bank. However, banks can provide the necessary direct deposit change forms to give to your employer.


• Check the bank website. Many banks have direct deposit stop and change forms on the website. Look in the services and forms section to find printable forms you can submit to your employer or organization.


• Allow processing time. Direct deposits typically cannot be stopped right away. It takes about 2 weeks for a direct deposit to be stopped. Expect to receive one more direct deposit after notifying the organization of the stop.


• Ensure the direct deposit was stopped. Some companies may not stop the direct deposit after you have made the request. Follow up on your request to ensure it was received and processed.