How Does Direct Deposit Work With Green Dot?
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Green Dot Cards Are Accounts
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When a user purchases a card and sets up a Green Dot account, he actually establishes a financial account with Green Dot Corporation, a division of the Columbus Bank and Trust Company. In many ways, this account is very similar to a bank account with an associated debit card; the account has a specific and unique account number. Money can be deposited to the account, and the related card--the Green Dot card--can be used to spend money from the account. As with most bank accounts, the Green Dot account also has an associated American Bankers Association (ABA) routing number.
Direct Deposits Are Made As Usual
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When an account holder of a traditional checking or savings account enrolls in direct deposit, the employer uses the account's ABA routing and account numbers to transfer funds into the account via an Automated Clearing House (ACH) transfer. Green Dot accounts use this same transfer mechanism to fund Green Dot cards using direct deposit; when an employer or other entity submits a payment, the funds are sent electronically through the Automated Clearing House system and automatically settle in the Green Dot account on the scheduled payment date.
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Terms and Conditions Apply
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Green Dot Corporation has a special set of terms and conditions surrounding the use of direct deposit with Green Dot accounts. These terms and conditions are much like those enforced by other financial institutions, and they govern issues like when the direct deposit process can be canceled, when direct deposit funds are made available, and the general fees associated with use of the account.
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