Glossary

ACH

Automated clearing house.

ACH trace number

An identifying number assigned to each direct deposit payment to track the payment through the ACH network. Each payment’s ACH trace number can be obtained using the DDEP web application.

APN

Advance payment notification: An electronic notice emailed to payees to let them know when a state agency has issued a payment for them.

Automated Clearing House (ACH) Network

The electronic network for financial transactions that processes credit and debit transactions to individual and business accounts. The state’ direct deposit program includes state employee and annuity payrolls, state employee travel reimbursement, and payments to individuals and business entities.

Custodial agency

The state agency that establishes and maintains the payee’s direct deposit account information. The custodial state agency may or may not be the paying state agency. Direct deposit changes and cancellations are restricted to the custodial agency.

DDEP

The Direct Deposits – Reversals and Reclamations (DDEP) web application.

Electronic file transfer (EFT)

TINS transactions that are submitted electronically in a batch file and processed overnight; also called a batch process.

IAT

International ACH transaction: A direct deposit payment intended for funds to be transferred outside the United States.

Nacha

Formerly named the National Automated Clearing House Association, Nacha administers the rules and guidelines of the ACH network.

NOC

Notification of change.

Originating depository financial institution (ODFI)

A state-contracted financial institution responsible for transmitting the state’s direct deposit files through the ACH network.

Offset

The process of applying held warrants against a payee’s state debt.

Paying agency

A state agency that initiates a payment.

Prenotification (prenote)

A test transaction sent to the payee’s RDFI when the initial direct deposit is set up or changed.

Receiving depository financial institution (RDFI)

The financial institution that receives and credits a payee’s account.

Reversal

An ACH transaction initiated by the paying agency to recover an erroneous direct deposit payment from a payee’s account.

Settlement date

The date a direct deposit payment is posted to a payee’s account and when funds are made available to the payee.

SIC code

Standard Industrial Classification code.

State debt

A debt owed to a state agency, such as a state tax delinquency, child support delinquency, default of student loans, etc. When a payee is on hold and payments are held, the process is referred to as warrant hold.

Warrant hold

The process of holding a payee’s payments due to a state debt.