EFT - Direct Deposit Overview

Policy

SB 962, which was signed into law September 28, 2000, mandates that counties who offer Direct Deposit to their employees must also offer Direct Deposit as an option to recipients who receive cash assistance payments. Recipients who choose Direct Deposit will receive their cash benefits through an EFT to their personal bank account instead of receiving a paper warrant or having their benefits issued through an electronic transmission to theEBT system.

Purpose

The purpose of Direct Deposit is to promote financial independence and self-sufficiency for clients. This is accomplished by offering more options for money management and encouraging clients to establish bank accounts. It also provides greater convenience for clients with existing bank accounts. Direct Deposit will also avoid mail delays and minimize lost or stolen checks.

Cash Assistance Programs

Cash assistance programs to be included in Direct Deposit are:

Note: For GA, only the personal needs portion of the grant may be paid in the form of Direct Deposit.

Client Enrollment

In order for a recipient of cash assistance to participate in Direct Deposit and have their benefits electronically transferred, he/she must have a savings or checking account at a banking institution. A recipient may request to enroll or disenroll from Direct Deposit at any time. The EW must explain/offer Direct Deposit at intake, RV, and when a change in payee occurs.

Definitions

The following definitions are used in reference to Direct Deposit. Click a term to view the definition:

Automated Clearing House

Benefit Issuance Unit @ Julian

Direct Deposit

Electronic Funds Transfer

National Automated Clearinghouse Association Codes

Pre-Note Status

Transmittal

Direct Deposit Form

The following form is used for Direct Deposit.

“Direct Deposit Enrollment Form” (SCD 1948)

Usage

The “Direct Deposit Enrollment Form” (SCD 1948) is to be used as the client’s authorization to initiate Direct Deposit.

Completion

The client must complete “Section 1” of the SCD 1948. “Section 2” is to be completed by the bank representative only if the client requests Direct Deposit be made into a savings account. If the client requests Direct Deposits be made into a checking account, a “voided” check must be provided. If the client is unable to provide a “voided” check, “Section 2” must also be completed and signed by the bank representative. The EW completes the top portion of the form “Client Name/Number/EW”. The white copy of the SCD 1948 is to be placed in the designated Direct Deposit basket. Clerical staff will batch the forms on a daily basis and forward them to the BI Unit @ Julian, who will make the necessary entries on the Maintain EFT Detail window.

Scanning

The yellow copy of the SCD 1948 and a copy of the check, if applicable, is to be scanned into Imagings under BENEFITS/F2 - Case Verif/Child Support.