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The second is more colloquial and less likely to sound odd, since "direct deposit" is a compound noun in which the two words behave as one item, a fact which carries over when the compound noun becomes a verb. "The company direct-deposited my paycheck every month" is just fine.
Last fall there was a discussion of similar verbs on the American Dialect Society email list, including to executive produce, to absentee vote, to underage drink, and to offshore drill.
For whatever it's worth, my company tells us that my "funds will be deposited on Monday." The fact that they will be direct-deposited is assumed, making it unnecessary to specify it. Now, it's an interesting question about what is done for the few Luddites who insist on having their paychecks mailed to them. Do they get a separate email informing them that their checks will be in the mail on Monday?
Martha Barnette
Grant Barrett
Grant Barrett
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