Getting started with Direct Deposit

What is Direct Deposit?

Direct Deposit allows eligible users to transfer a portion of their paycheck or the entire paycheck to their Coinbase Account. Eligible users can determine if their paycheck will be deposited as USD into their USD balance, or converted into an available crypto asset of their choice in their respective crypto balances.

What are the benefits of Direct Deposit? 

  • Zero trading fees on all incoming Direct Deposit funds. Coinbase includes a spread in the price when it makes the conversion from USD to a cryptocurrency in the exchange rate. 1

  • Flexibility to choose the asset in which deposits will happen as well as the portion of the paycheck that will be deposited.

  • Automate paycheck deposit into Coinbase. 2

  • Update paycheck distribution setting from inside the Coinbase app or website.

Am I eligible for Direct Deposit?

If you reside in the US, you may be eligible for Direct Deposit.

Note: Hawaii residents are not eligible at this time.

How do I set up Direct Deposit for my Coinbase account?

You can set-up Direct Deposit by selecting Direct Deposit in your account settings.

My employer pays me directly via paper checks. How can I enable Direct Deposit?

When you sign up for Direct Deposit, you’ll get an option to share a Pathward®, N.A. bank account and routing number with your employer. That is the account where your paycheck funds will be sent to. This account and routing number cannot be used to make any withdrawals. You can send this bank information or the automatically populated direct deposit form in your Coinbase Account with these details  to your payroll representative. If prompted by your payroll provider/employer then please enter “Pathward” as the name of the bank and “Checking” as the account type. *

Is Direct Deposit the only way to add funds to my account?

No. You can also deposit funds into Coinbase using other payment methods like bank transfer, PayPal etc. Learn more about payment methods for US customers.

How long will it take for me to get my first Direct Deposit into Coinbase?

Direct Deposit can take up to 2-3 pay cycles to become effective. 

Are my funds FDIC insured?

Learn how Coinbase insures funds.

What does zero trading fees mean?

Coinbase will waive trading fees on your incoming Direct Deposits but will include a spread to convert your Direct Deposit funds to your chosen cryptocurrency. Coinbase trading fees will be applicable for any future buying, selling, or converting that you may do with those funds. For example, if you elect to have $1000 directly deposited to Coinbase as BTC, then Coinbase will waive the trading fee for that BTC conversion. However, if you choose to convert that BTC into another crypto or to sell it in the future, then the Coinbase trading fees will apply. Learn more about Coinbase pricing and fees disclosures.

Are there tax implications?

Any income tax withholdings by your employer will continue to be deducted from payroll before you receive it in Coinbase. You may have taxable activity if you sell, convert, or earn more crypto. Learn more about crypto taxes here.

When will my paycheck be deposited into Coinbase?

You’ll be able to see the Direct Deposit funds once your paycheck has been deposited and accepted by our bank partner, Pathward®, N.A. Note that this process can take 3-5 business days from the day that your paycheck was processed by your employer. 

Depending on your selection during sign up, we’ll convert your paycheck into the supported crypto of your choice and deposit it into your corresponding crypto balance, or transfer the paycheck as USD into your Coinbase USD balance as soon as your paycheck arrives in the Pathward®, N.A. account.

The Coinbase Card is issued by Pathward®, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. The Coinbase Card is powered by Marqeta. 

1. While this feature is free, other fees may be associated with the card. See Cardholder Agreement for details.

2. If you choose to be paid in crypto, Coinbase will automatically convert your paycheck from US dollars to crypto with no transaction fees.

*Coinbase has partnered with Pathward®, N.A. to offer the Coinbase Direct Deposit product. The Coinbase Direct Deposit product functions similar to a Checking account.