ESD payment method differences - why does direct deposit take longer than the debit card?

I've had the ESD debit card for about 8 months and can confirm it's crazy fast. File Sunday, money hits at like 2-3am Monday without fail. From what my neighbor tells me (she has direct deposit), her bank usually holds the payment for 1-2 business days after ESD sends it. So ESD might be sending payments at the same time, but the debit card makes it available immediately while banks do their processing thing.

The direct deposit vs. debit card timing difference is actually normal. When ESD processes payments, they're sent to the US Bank ReliaCard system and to ACH direct deposit processing simultaneously. However, the ReliaCard system can make funds available immediately without waiting for traditional banking clearing processes. Meanwhile, direct deposits go through the ACH system which typically takes 2-3 business days to clear depending on your bank's policies. This isn't an ESD delay but rather just how the banking system works. As for why people choose direct deposit even with this delay: convenience (everything in one account), avoiding ATM fees with the card, easier budgeting, and automatic bill payments are the most common reasons.

i use direct deposit cuz i don't want another card to keep track of!!! lost my first ESD card and had to wait like 10 days for a replacement and couldn't access my $$ during that time. NEVER AGAIN. rather wait a few days and have it safe in my regular account where i can use my existing debit card or just pay bills directly.

I've been on both sides of this. Started with the ReliaCard and yes, payments were super quick - always available Monday morning after filing Sunday. I switched to direct deposit about 3 months ago because I wanted everything in one account for budgeting purposes. Now payments typically hit my credit union account on Wednesday morning. The payment speed difference is real, but here's why direct deposit might still be better for some people: 1. No fees when transferring to your main account (ReliaCard charges for transfers) 2. No risk of losing the physical card 3. Easier to pay bills directly from one account 4. Some employers also use direct deposit, so all money is in one place 5. Better fraud protection through your primary bank It really depends on your financial situation and whether getting the money 2-3 days sooner is worth the potential downsides of the card.

This is actually something worth talking about! I was in adjudication for 11 WEEKS and couldn't get anyone at ESD to talk to me about my claim. Finally found this service called Claimyr (claimyr.com) that got me connected to an actual ESD agent in about 25 minutes when I had been trying for weeks! They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 The ESD agent explained that I actually had a choice between direct deposit and the debit card. I told her about my concerns with timing and she confirmed that the ReliaCard typically shows funds 1-3 days before direct deposit because of how banking transfers work. Ended up choosing the card because I'm living paycheck to paycheck right now and those extra days matter a lot.

THE CARD IS A NIGHTMARE DONT DO IT!!!! My account got frozen for "suspicious activity" when I tried to withdraw more than $300 at once and I couldn't access ANY of my money for a week while they investigated. Direct deposit might be slower but at least my bank doesn't randomly lock me out of MY MONEY!!!!!

Has anyone noticed that sometimes the direct deposit is faster during holiday weeks? Last Christmas my payment hit on Tuesday instead of the usual Wednesday/Thursday. Not sure if that was just a fluke or if ESD processes things differently during holidays.

I think abt 70% of ppl use direct deposit based on an ESD workshop I went to last month. The presenter mentioned it when someone asked a similar question. So ur definitely not alone in choosing that option!

btw if u do decide to switch from direct deposit to the card or vice versa you can do it online through ur eServices account. go to UI claim > settings > payment options. takes effect for the next payment after u make the change.