A system and method for automatic approval of direct deposit payroll limit increases includes a computing system implemented process for automatic approval of direct deposit payroll limit increases whereby a payroll management system provider establishes qualification criteria for automatic approval of direct deposit payroll increases. Once the qualification criteria are defined, the qualification criteria are stored. Then, when a customer business requests a direct deposit payroll that exceeds at least one of the customer's current direct deposit payroll limits, the process for automatic approval of direct deposit payroll limit increases analyzes the requested direct deposit payroll data and/or customer history data and compares this data with the qualification criteria. If the present direct deposit payroll funds request meets the qualification criteria, the direct deposit payroll limit for the customer business is automatically increased and the direct deposit payroll funds request is approved without further action/input from the customer business.