Reply #30: Direct Deposit goes through a private business (or 2) [View All]

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At least 15 years ago when I was in the industry it did for all the banks I knew of. In fact it may go through a couple of different businesses. The government tells one business what transfer it wants. That business puts the transfer in the fed clearinghouse (usually the one run by the fed). Another business (possibly the same one) reads all of the transfers for your bank that night and tells your bank to put the money in your account.