Lesson 1: The Direct Deposit Process

Bill Payment Process Overview

• A state agency submits their payment information to the Comptroller’s office.
• The Comptroller’s office processes the payment request, then transmits that data to a contracted bank, also known as an Originating Depository Financial Institution (ODFI).
• The next day, the ODFI sends that payment through an ACH operator to the Federal Reserve.
• The Federal Reserve ACH Operator settles the entry to the Receiving Depository Financial Institution’s (RDFI) account, which then credits the payee’s account.

When do payments post?

The entire journey of the payment — from the Comptroller's office to the payee's account — takes two banking days. The date reflected in TINS on the Payee Payment Information (PYWRNT) screen is the date the Comptroller’s office processed the payment in USAS. The day the payment is posted to the payee’s account is called the settlement date.

Though a bill payment is credited to the payee’s account two banking days from the date reflected on PYWRNT, a payroll payment may be postdated. In this case, the date on PYWRNT is the date the payment should post.

Next: Learning Check