How to Setup Electronic Fund Transfer (EFT)?

EFT User Guide (Opens in a new window)

EFT - Frequently Asked Questions

1.	What is EFT?
2.	What is the ACH CCD+ format?
3.	What is CTX format?
4.	What is the DED Segment Addenda?
5.	Federal agencies currently process both court ordered and volunteer CSP. Among the many CSP that are processed on behalf of federal employees, how would an Agency know which payments to convert to the EFT/EDI CCD+ or CTX format?
6.	Can all centralized States accept CSP in both ACH corporate formats, CCD+ and CTX?
7.	Can federal agencies use the same ACH file format for withholding CSP that is currently used to process payroll, salary payments, and allotments?
8.	What is a IV-D case as referenced as a part of the Social Security Act?
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1. What is EFT?
EFT is a process that electronically transfers dollars from one bank to another. In child support applications, EFT’s are used to simultaneously transfer child support payment and remittance information to State child support agencies. Using EFT has proven to be faster and more efficient than mailing paper checks and hardcopy remittance. It saves postage and administrative processing costs and reduces the chance of error.
2. What is the ACH CCD+ format?
The CCD+ format is a National Automated Clearing House Association (NACHA) ACH corporate payment format with a single 80 character addendum record capability. The addendum record is used by the originator to provide additional information to the payment recipient about to the payment.
3. What is CTX format?
The CTX (Corporate Trade Exchange) format allows for up to 9,999 addenda records with approximately 800,000 characters. Given this large addendum record capability, full and complete remittance information can be transmitted with the CTX payment. Therefore, it is possible for one CTX payment to cover multiple invoices since full remittance information will be transmitted to the vendor's financial institution together with the payment. The ACH CTX format includes an entire 820 transaction set in its addenda records.
4. What is the DED Segment Addenda?
DED Data Segment is an American National Standard Institute (ANSI), Accredited Standards Committee (ASC) X12 syntax which stands for DEDUCTION. The DED Segment, which can be used in various other EDI Transaction Sets, is used in the CCD+/CTX transactions. The DED Segment allows the originator of the transaction to provide specific EDI structured data about the CSP and the payer.
5. Federal agencies currently process both court ordered and volunteer CSP. Among the many CSP that are processed on behalf of federal employees, how would an Agency know which payments to convert to the EFT/EDI CCD+ or CTX format?
The CSP targeted for conversion are: (1) All child support orders enforced by a State child support enforcement agency, and (2) Income withholdings for all child support orders that were initially issued on or after January 1, 1994 and that are not enforced by a State child support agency. Some States have extended the Welfare reform legislative requirement, and developed the centralized collection capability for all old and new orders under the legislation, as well as other types of CSP.
6. Can all centralized States accept CSP in both ACH corporate formats, CCD+ and CTX?
The Welfare Reform legislation of 1996 initially required that States develop centralized collection capability for CCD+ payments. Further 1999 legislative requirements concerning State EFT/EDI Programs included the capability to process CTX payment transactions as a State certification requirement.
7. Can federal agencies use the same ACH file format for withholding CSP that is currently used to process payroll, salary payments, and allotments?
Payroll and allotments are classified as consumer payments (issued through the ACH network in the Prearranged Payment and Deposit (PPD) format to a financial institution (FI) consumer account). The ACH processing regulations for consumer payments/FI accounts require that they be processed, and handled by the receiving financial institution in accordance to regulations governing consumer payments that are different from that of a corporate type payment (i.e., CCD+, CTX).
8. What is a IV-D case as referenced as a part of the Social Security Act?
The term IV-D comes from Title IV, Section D of the Social Security Act which established the Child Support Enforcement Program in 1975. IV-D cases are opened for Temporary Assistance to Needy Families (TANF) cases involving children. IV-D cases may also be opened for families not receiving public assistance if they apply for basic child support services (e.g., locating parents; establishing paternity; establishing child support orders; collecting and distributing child support; enforcing child support orders) through the State child support enforcement agency.