If a prenote is processed, it must be done at least 30 days before actual EFT payment is initiated. Prenote TestĪ zero-dollar prenotification test entry sent through the ACH network to verify banking information. The association that establishes the standards, rules, and procedures that enable depository financial institutions to exchange ACH payments on a national basis. National Automated Clearing House Association. This method of payment will incur additional cost to the taxpayer which will be billed separately. The use of this method for payment of premium taxes to CDI requires written approval and is for emergency use only. One wire transfer system used generally to transfer large dollar amounts instantaneously and which is provided by the U.S. The central banking system of the United States, consisting of twelve regional reserve banks and those member depository institutions that are subject to reserve requirements. EFT refers to any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone instrument, computer, or magnetic tape, so as to order, instruct, or authorize a financial institution to Debit or Credit an account. A term that identifies the type of systems used to transfer payments or funds electronically. Taxpayers may report information to the service by means of voice, touch-tone telephone, personal computer, terminal, or mainframe. Data Collection ServiceĪlso known as third-party vendor, the State's data collection service is the party responsible for the collection of taxpayer's information for the purpose of initiating an ACH Debit transaction. The CCD+ format combines the widely used CCD format with a single addendum record that can carry 80 characters of payment - related data known as the TXP (see TXP). This is a standard NACHA data format used to make ACH Credit transactions. CCD+Ĭash Concentration or Disbursement Plus Addenda. Under the ACH Debit method, the taxpayer contacts the State's data collection service and originates an ACH transaction debiting the taxpayer's designated bank account and crediting the State's bank account for the amount of tax payment. ACH DebitĪCH Debit is the converse of the ACH Credit. An ACH Credit transaction is one in which the taxpayer, through its own financial institution, originates an entry crediting the State's designated bank account and debiting its own bank account for the amount of tax payment. ACH CreditĪCH Credit is a means by which money is transferred electronically through the Automated Clearing House ( ACH) network. Means an entity that operates as a clearing house for electronic Debit or Credit entries pursuant to an agreement with an association that is a member of the National Automated Clearing House Association ( NACHA).
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