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Direct Deposit Processing
Direct Deposit Forms

The National Automated Clearing House Association (NACHA) rules require an authorization form from non-consumers (business entities) who request payments via the automated clearing house (ACH) network. Although the NACHA rule is optional in requiring an authorization form from consumers (individuals), the Comptroller’s policy requires agencies obtain an authorization form from both individuals and business entities.

The Comptroller’s office provides a Direct Deposit Authorization form (74-176) for optional agency use. Agencies may use the Comptroller’s form or create their own custom form or electronic authorization method such as a self-service portal or electronic form require Comptroller approval before they are used.

Direct Deposit Authorization form (74-176) or a Comptroller-approved custom form, is required for the initial direct deposit setup requests, account information change requests and cancellations. Section 4 on Form 74-176 requires the payee provide the account information on file in TINS when requesting changes. This provides an added security measure to minimize fraud.

  • Agencies must verify the information submitted in Section 4 on Form 74-176, or the Comptroller-approved form, using the Payee Distribution – Direct Deposit (PYDIST) online screen.
  • Agencies should contact the payee to verify the change request is valid using the payee’s contact information maintained by the agency and not the contact information on the change request form as it may be fraudulent. Recommended documents include:

Instructions for Comptroller’s Direct Deposit Authorization Form

An agency that chooses to use the Comptroller’s form must download the most current version of the form and:

  • Enter your agency number in Section 8, Number 31 to autopopulate your agency’s return address on the form.
  • Select Yes or No on the second dialogue box to indicate whether the payee is a state employee.
  • Provide the form to the payee.

The payee must complete the form and return it to the paying agency to:

  • Set up direct deposit.
  • Make changes to direct deposit.
  • Cancel direct deposit.

Approval Required for Alternative Methods

Agencies that issue payments through the Comptroller’s office may choose to create their own direct deposit authorization form or electronic authorization method, which may include online applications, self-service portal or custom forms.

The alternative form or method must include without alteration the language used and match any updates made in these sections of the Comptroller’s forms:

Alternative methods must be submitted for approval to Payment Services before being implemented to ensure compliance with NACHA rules and Comptroller policy and requirements. For approval:

  • Submit screen shots from an online application.
  • Email or fax the documentation with the subject “Direct Deposit Authorization Form.”

Agencies that issue direct deposit payments exclusively with local funds are not required to obtain Comptroller approval of their direct deposit form. However, the Comptroller’s office recommends the form include the international payments verification, similar to Section 5 of the Comptroller form. This will ensure the agency complies with the requirements set by the Office of Foreign Assets Control (OFAC).

Retention of Authorization Form

The custodial agency is required to retain the original or a scanned copy of the most current Direct Deposit Authorization form for each payee, as well as the ACH (Direct Deposit) Payment Destination Confirmation form (74-227) (if completed).

In accordance with NACHA rules, form retention is two years from the termination or revocation of the authorization.