Introduction to Payment Processing Policy
Direct Deposit

Texas Government Code, Section 403.016, includes provisions that require the Comptroller’s office to:

• Set up a system for direct deposit payments, which are a form of electronic funds transfer (EFT).
• Use the services of the automated clearinghouse (ACH) network.

  Note: The Comptroller’s office complies with the rules and guidelines administered by the National Automated Clearing House Association (NACHA) for the state’s direct deposit system.

• Adopt administrative rules to administer the direct deposit system.

In addition, Texas Government Code, 403.016 (c)(2), requires other governmental entities to receive recurring state payments by direct deposit.

Agencies must follow the rules found in Texas Administrative Code, Title 34, Part 1, Chapter 5, Subchapter B:

• Section 5.12: Processing Payments Through Electronic Funds Transfers
• Section 5.13: Administration of Electronic Funds Transfers
• Section 5.14: Participation in the Electronic Funds Transfer System
• Section 5.15: Electronic Funds Transfers – Paycards

Note: For direct deposits made in error, see the Direct Deposit page.