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Introduction to Direct Deposit
Process Overview

illustration of text below

This illustration depicts the flow of a direct deposit payment through the automated clearing house (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 The ABCs of ACH.