Lesson 4: Changing Direct Deposit

Preparing for a Direct Deposit Change

Preparation Steps

To ensure a change request is from the rightful owner of the direct deposit information as an effort to minimize potential fraud, it is critical that agencies follow these recommendations:

• Do not accept a direct deposit change request over the phone or email unless the email is encrypted and includes the signed authorization form and IAT form (if applicable).
• Do not give out account information or address information maintained in TINS or your agency’s records. Instead, confirm the information to be changed by requiring the person to provide it and respond “yes” or “no.”
  • If the information is confirmed, proceed with the change request based on the signed authorization form.
  • If the information is not confirmed, do not accept the change request. Contact the payee using contact information maintained by your agency; do not use the contact information on the form, since it may be fraudulent.

When the agency confirms the change request is from the rightful payee, take the following steps, whether the change is processed online or via the batch process:

1. Review the authorization form to ensure:
   • All the appropriate sections and fields have been completed.
   • The information is legible, especially routing and account numbers. If there is any doubt, contact the payee to verify information.
   • The payee responded to the IAT question. Take the appropriate steps covered in Lesson 2, based on the payee’s response.
   • The form is signed.
2. Access PYDIST.
   • Make note of the payee’s 11-digit TIN if it is not provided on the form. Entry screens to add, change and cancel direct deposit require the 11-digit TIN; only inquiry screens allow the use of a 10-digit TIN. The system-assigned 7 TIN for an SSN and ITIN or the 11-digit 1 TIN for an EIN is required.
   • If the payee has multiple direct deposit mail codes, verify the appropriate mail to be updated. If the form does not specify a mail code or if there is any doubt, contact the payee.
   • Verify your agency is the custodial agency for the mail code to be updated.
     
     

     If your agency …	Then …
     Is not the custodial agency	Refer the payee to that agency. Access the Paying Agency Contact List to obtain the custodial agency’s contact information.
     Is the custodial agency	Proceed with the change request.

3. If the change request includes a change of financial institution, verify the new routing number is on the BANKIN screen.

Next: Payee Direct Deposit Change (PDDCHG) Screen