Lesson 2: Direct Deposit Forms Requirements

Authorization Form Requirements

To comply with both Nacha rules and Comptroller policy requirements, agencies must obtain an authorization form from all payees to set up, change or cancel direct deposit.

State agencies are responsible for setting up their payees’ direct deposit in TINS. Before direct deposit can be set up, agencies must obtain a completed and signed direct deposit authorization form from the payee or an electronic signed form if the agency provides alternate methods of enrollment.

State employees’ direct deposit for payroll payments are not set up in TINS and must be set up through the statewide payroll system. However, a state employee’s direct deposit instructions for travel reimbursement payments can be set up in TINS if the mail code is not a payroll mail code (SP1, SP2, SP3). Although these mail codes are displayed in TINS, they can only be updated through the payroll system.

Comptroller Forms

The Comptroller’s direct deposit forms are available to download. Comptroller direct deposit forms are not available to the public and require login by an agency user. Agencies must provide their payees with the most current version of the Comptroller forms. Agencies that host a Comptroller form on their website must:

• Ensure the forms are secure and require login to prevent unauthorized use.
  – and –
• Maintain the most current version of each form.

If you are not able to access the following direct deposit forms on FMX, contact your agency’s security coordinator:

• Direct Deposit Authorization form (74-176)
• ACH (Direct Deposit) Payment Destination Confirmation form (74-227)
• Direct Deposit Reversal Request form (74-191)

Agency Forms

A state agency may create its own direct deposit authorization form or alternate method such as an electronic form or self-service portal. The form or alternate method must be preapproved by the Comptroller’s office before it is used. Agencies must email a copy of their form or screen prints of an electronic form to payment.services.dd@cpa.texas.gov for review and approval.

For both Comptroller forms and agency forms, agencies must provide their contact information, including the agency phone number for direct deposit questions and the acceptable method(s) of submitting the forms to the agency, which may include:

• U.S. mail with the agency’s return address.
• Fax with the agency’s fax number.
• An encrypted email with the agency’s email address.
  – or –
• Electronic transmission via the agency’s secured web portal, if applicable, with the agency’s web address.

See Approval Required for Alternative Methods on Direct Deposit Forms in TexPayment Resource.

Form Retention

Nacha requires the direct deposit authorization form be retained for two years from the termination or revocation of the authorization. This includes Comptroller-approved agency forms or alternate methods such as copies of electronic forms or screens from a self-service portal.

Example: An authorization form processed in 2004 for a setup or a change whose direct deposit was canceled in 2025 must be retained for two years past the 2025 cancellation date or until 2027. Form 74-227 must be:

• Retained with the authorization form 74-176 when the payee is required to submit it at the time of setup or change.
• Made available to the Comptroller’s office for audit purposes to support the agency’s due diligence in complying with the federal requirements for international ACH transaction (IAT) payments, which are covered in the next section.

Next: International ACH Transactions (IATs)