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TINS Warrant Hold Web-Based Training

Lesson 1: The Basics of Warrant Hold

Warrant Versus Direct Deposit

Warrant (State Check)

A warrant is a state payment in the form of a paper check. The Comptroller’s office warrants, or guarantees, funds will be available when state warrants are presented for payment. Payments to state payees default to a warrant unless the payee signs up to receive payments by direct deposit.

What Is Direct Deposit?

Direct deposit is an electronic method of payment issued directly to a payee’s financial institution via the automated clearing house (ACH) network.

When a payment is issued to a payee who is set up to receive payments by direct deposit and is on warrant hold, the payee’s direct deposit is temporarily suspended. A warrant is issued and held by the Comptroller’s office; this is called a held warrant.

As long as the payee remains on hold, the payee’s direct deposit remains suspended. Payments by direct deposit resume once the hold is released. Therefore, it is critical that the payee’s custodial agency maintain up-to-date direct deposit information in case the payee makes changes to the account during the suspension period.

See TINS Direct Deposit Web-Based Training  new window for more information about the direct deposit process.

Next: State Agency Responsibilities