A prenote is a test transaction used by banks and financial institutions to verify the accuracy of the account information provided by the recipient of a direct deposit before the actual funds are transferred. It typically involves sending a small amount of money to the recipient's account and then verifying that the transaction was successful.
Direct deposit, on the other hand, is a method of electronically transferring funds from one account to another. It is commonly used by employers to pay their employees' salaries directly into their bank accounts, eliminating the need for paper checks.
In summary, a prenote is a test transaction used to verify account information before a direct deposit is made, while direct deposit is the actual electronic transfer of funds from one account to another.
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