Lesson 1: The Direct Deposit Process

Key Terms

Direct Deposit

Direct deposit is an Automated Clearing House (ACH) method of payment that provides for the electronic transfer of funds directly into the account of a payee.

Automated Clearing House

Automated Clearing House (ACH) is an electronic network for processing financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit payroll and vendor payments.

NACHA

The National Automated Clearing House Association (NACHA) governs the ACH network by establishing standards, rules and procedures for the electronic exchange of payments between entities.

The Comptroller's office adheres to all rules set forth by NACHA and the Texas Administrative Code.

Next: Bill Payment Process Overview