State Vendors/Grantees Electronic Funds Transfer FAQs


  1. What is EFT?
  2. Will I receive notice from the State Comptroller's Office if any of my payment requests have been offset for tax liabilities owed the State?
  3. What is ACH?
  4. Are there any costs associated with ACH?
  5. At what level of detail will deposits show on my bank statement?
  6. Can I tell from the bank statement which state agency is paying me and which of my invoices are being paid?
  7. My company has only one TIN; however, it requires separate bank accounts for each accounts receivable (billing) location. Can I participate in the EFT program and request more than one bank account to receive the state disbursement?
  8. Why is a TIN important?
  9. Can I make changes or later decide I don't want to continue with EFT?
  10. How long does it take to start receiving EFT payments from the state?
  11. If I am missing an EFT deposit, what should I do?
  12. If I receive an incorrect EFT deposit what should I do?
  13. If I receive another company's EFT deposit, what should I do?
  14. When can I reasonably expect to receive an EFT deposit once I have billed a state agency?
  15. Can credit memos still be processed by an invoiced state agency and appear on the netted EFT deposit?
  16. Can I specify an ACH format, to be used to transmit the state's payment information to my bank?
  17. Can I specify the actual format of information (invoice number, amount, etc.) to be included in the ACH addendum record?

State Vendors/Grantees Electronic Funds Transfer

  1. What is EFT?

    EFT is the abbreviation for Electronic Funds Transfer, a technique used by the banking system to debit and credit bank accounts within a bank or between banks without the exchange of a paper document.

  2. Will I receive notice from the State Comptroller's Office if any of my payment requests have been offset for tax liabilities owed the State?

    Yes, the EFT program will have no impact on the Comptroller's Liability Offset Program. If the amount deposited is less than what was expected or you simply didn't receive any deposit, you should determine if a "Liability Notification" letter has been received by your company. Also, our One Stop Vendor Payment Inquiry system will show a payment status of "OFFSET."

  3. What is ACH?

    ACH is one method of EFT used to move funds between banks. ACH is the abbreviation for Automated Clearing House and is a fee-based service of the National Automated Clearing House Association. An ACH transaction is generally referred to as a direct deposit.

  4. Are there any costs associated with ACH?

    Yes, ACH fees vary by bank. You should contact your bank for their fee schedule for receiving ACH deposits. ACH fees are generally lower than check processing fees.

  5. At what level of detail will deposits show on my bank statement?

    This depends on the receiving bank's procedures. The state intends to simply replace the physical check you currently receive with a single deposit to your bank account. Each deposit to your bank account may contain summarized amounts from individual invoice payment requests to a specific bill-paying agency.

    Additional, detail payment information is provided by the One Stop Vendor Payment Inquiry system, and is also included in the CTX or EDI payment format addendum records.

  6. Can I tell from the bank statement which state agency is paying me and which of my invoices are being paid?

    Not necessarily, this information is not routinely available on bank statements. However, this information will be provided in the One Stop Vendor Payment Inquiry System and is also included in the electronic EDI, CCD+, or CTX payment record.

  7. My company has only one TIN; however, it requires separate bank accounts for each accounts receivable (billing) location. Can I participate in the EFT program and request more than one bank account to receive the state disbursement?

    No, currently we are offering this to one bank account per TIN.

  8. Why is a TIN important?

    Since the state has numerous bill-paying offices, the only effective method to link a vendor in one bill-paying file with the same vendor in another bill-paying file, is through the use of the vendor's Taxpayer Identification Number (TIN). The TIN is also required by state law. Each vendor is responsible for the accuracy of the TIN information and must communicate errors to the bill-paying agency.

  9. Can I make changes or later decide I don't want to continue with EFT?

    Yes, simply complete a revised GADX-10 form, the EFT registration form, available on the EFT Program page. Be sure to do this before closing or moving your account.

  10. How long does it take to start receiving EFT payments from the state?

    It will take about 5 business days to complete the registration and bank verification procedures. You should insure that the name, address and TIN information on the approved registration form is included on your invoice to the bill-paying agency.

  11. If I am missing an EFT deposit, what should I do?

    If you were expecting an EFT deposit from a state agency and have allowed for a reasonable amount of time to receive a bank confirmation or physical check from the state, first contact the bill-paying agency, the agency you invoiced. The bill-paying agency will advise you of the status of your payment request. They will receive daily reports concerning payments made in their behalf. You may look up the invoice status by accessing the One Stop Vendor Payment Inquiry system.

  12. If I receive an incorrect EFT deposit what should I do?

    If the payment is not yours, ask the bank to return the payment. If you determine from the details of the EFT deposit from either the bank addenda record or from the One Stop Vendor Payment Inquiry system that the payment is yours, but the amount is incorrect, contact the state agency that is paying your invoice. The bill-paying agency will advise you concerning the differences in the reported amounts.

  13. If I receive another company's EFT deposit, what should I do?

    Strict internal control procedures will be in place to decrease this possibility. However, should you receive moneys you aren't entitled to, you are responsible for returning the moneies to the state. Ask the bank to return the ACH payment immediately as a rejected payment.

  14. When can I reasonably expect to receive an EFT deposit once I have billed a state agency?

    State law (State Finance and Procurement Article, Title 15-103) requires all valid invoices to be paid within thirty days after the later date of 1) the date of receipt of the invoice or 2) the date of receipt of the goods and services. A Payment Due Date is specified on all invoices submitted by state bill-paying agencies to the Treasury Department. The law doesn't require bills to be paid earlier than thirty days unless specified by contract or agency business practices. The payment due date is used to warrant disbursements to the State Treasurer by the State Comptroller and EFT disbursements take two bank work days to be deposited to your account on the due date once warranted by the State Comptroller. State agencies should enter the Payment Due Date for working fund reimbursements, disbursements to agency bank accounts, and for vendor invoice payments.

  15. Can credit memos still be processed by an invoiced state agency and appear on the netted EFT deposit?

    Yes. Credit memos will be netted in the bank deposit amount.

  16. Can I specify an ACH format, to be used to transmit the state's payment information to my bank?

    Yes. You may specify CCD+, CTX, or EDI. There may be a deposit fee charged by your bank for the CTX or EDI formats, and you must contact your bank to receive this format.

  17. Can I specify the actual format of information (invoice number, amount, etc.) to be included in the ACH addendum record?

    No, the Treasury Department will format the ACH records following the guidelines of the National Automated Clearing House Association.