If there is one industry where technology has truly made an improvement, it is the banking industry. To think that just a couple of decades ago most people received a paycheck every two weeks is mind-boggling. Today, if you are not getting paid by direct deposit it seems archaic. As of 2022, 93% of Americans were paid using direct deposit. We have grown accustomed to seeing our paycheck or any other payments deposited directly into our accounts without us having to lift a finger. One question I always get asked about this method is: does getting a new debit card affect direct deposit? 

I can see why you would make that connection. Your debit card is tied to your bank account when it comes to making payments. You can buy goods and services, or even other forms of currency like money orders and gift cards. It is also your bank card which can be used to deposit or withdraw funds at an ATM. But when it comes to your direct deposit, your debit card has no impact on this. 

Even though the debit card is linked to your bank account, it is not required for direct deposit. So if you lose your debit card, don’t worry! You won’t have to change anything about how you get paid. Keep reading to see why the debit card has no impact on your direct deposit payments!

Does Getting a New Debit Card Affect Direct Deposit?

Thankfully no! No matter how many debit cards you get they are all tied to the same account. Likewise, when you sign up for direct deposits, it is associated with your bank account and not your debit card. This might be confusing since many people think of the two interchangeably.

One metaphor I like to use is your credit card. While your credit card number does not change, your credit card account is a different number. You can get issued a new credit card each year but as long as your account stays the same nothing will change. In both cases, the payments and transactions are associated with the account and not the card. 

If you do lose your debit card, you will still get paid by direct deposit. You should probably report that to your bank though so they can issue you a new debit card. While there are ways around it now like using Apple Pay or Google Pay with your phone, you will still need your debit card to make transactions at an ATM. 

Will I Get Direct Deposit if I Lock My Card?

Most of the time, when you need a new debit card it means you misplaced it. What is the first thing you usually do? Call the bank and lock your card so nobody can use it. These days, with technology like Tap to Pay, anyone can use their debit card to make small purchases without a pin code. If you can’t find your card, lock it immediately. You can always unlock it if you happen to find it. 

If you do lock your card don’t worry, there is no impact on your direct deposit payments. Again, direct deposits will always be associated with your bank account and not your debit card. Even if your card is locked from making purchases or withdrawing cash, any automatic payments that are set up for your bank account will still be processed.

Looking for Another Way to Receive Money? Check out this article: Is Venmo Available in Canada?

Will Getting a New Debit Card Stop Recurring Payments?

So this is where getting a new debit card could potentially have an impact on your payments. But for this example, I am talking about recurring charges like monthly bills. This has nothing to do with direct deposits like a paycheck or government-issued payment. 

Getting a new debit card could change things if you set those payments up to be made with your debit card. There are plenty of debit cards that double as credit cards these days. Visa Debit is a card that is commonly issued at most major Canadian banks. If you have to replace your card, any recurring payments charged to the credit card portion of this card will need to be transferred to your new card.

This is likely the only time you will need to worry about changing your debit card. If you just have a regular, stand-alone debit card, then you have nothing to be concerned about! 

Related Financial Geek Article: Can You Go into Debt with a Debit Card?

Can I Change My Direct Deposit at Any Time?

Yes! Although you should probably take a look at your company’s HR rules before you do so. Changing your direct deposit account is completely fine and can be done as many times as you wish. Just note that if you do so too close to payday, your pay for that period might be delayed. 

When you change your direct deposit, you are actually changing your bank account. This might happen if you upgrade to a newer bank account or even change banks altogether. There are people who like to do this to take advantage of special promotions or gifts that a bank is giving away for signing up for a new account. 

There is no harm in changing your direct deposit account. Just as with changing your account to receive your paycheck, any other direct deposits will also need to be re-routed. If you receive any income support or childcare support, you will have to update the government with your new bank account details. 

The Bottom Line: How Does Getting a New Debit Card Affect Direct Deposit?

As you can see, getting a new debit card has zero impact on your direct deposit. Even though your debit card is associated with your bank account, it is the account number that never changes. You can get a hundred different debit cards but they will all be associated with the same account. 

I hope that cleared up some of those questions about debit cards and direct deposit!

Geek, out!

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