Introduction to Direct Deposit
This illustration depicts the flow of a direct deposit payment through the ACH network.
- The agency submits a direct deposit payment transaction to the Comptroller’s office through one of the statewide financial systems.
- If the payment successfully processes, the Comptroller’s office transmits it to the state’s Originating Depository Financial Institution (ODFI) through the ACH network.
- The ODFI transmits the payment to the Federal Reserve Bank, the main ACH processor.
- The Federal Reserve Bank uses the routing number to send the payment to the Receiving Depository Financial Institution (RDFI).
- The RDFI credits the payee’s account by:
- The opening of business on the settlement date when the RDFI receives the credit by 5 p.m. on the day before the settlement date.
- Midnight of the settlement date when the RDFI receives the credit after 5 p.m. the day before the settlement date.
For more information, see ACH Network: How it Works.