– how do some banks make paychecks available several days before the typical “payday”, while others don’t see them until actual payday?

Question

I get paid semi monthly. Usually I can expect to see my check on the actual payday, with my paystub showing the night before.

I got an email from my bank saying they will start showing deposits three days earlier now.

How does this work if payroll doesn’t pay out until specific days?

In: Other

Answer 1

simply put, employer sends payroll data file to bank (ACH – automated clearing house). bank gets this prior to your actual “pay date”. with said file/information, they give you what most financial institutions would refer to as a “provisional credit” of your money. should that information change for some odd reason, plus or minus, the differences would be reconciled shortly after.