Direct Deposit Holds and Releases

The following are ways a Direct Deposit can be held and/or released:

Holds

Holds placed on benefits by the system for non-receipt of a QR 7, failure to complete the RRR, etc. will hold the EFT benefits. The issuance status in the Search for Issuance window for future benefits changes from Pending to Hold. Once the QR 7 is logged into CalSAWS as received and complete or the RRR is completed, the issuance status in the Search for Issuance window is automatically changed back to “Pending” and benefits will be issued as EFT. EFT benefits with an Issuance Status of Pending can be held and/or cancelled.

Emergency Hold Process

EFT Benefits are generated at FME at which time the Issuance Status is updated to Issued. Emergency holds, per county policy, are NOT to be placed on EFT benefits once the [Issuance Status} is changed to Issued. Only EFT benefits with an Issuance Status of Pending can be held and/or cancelled.

Direct Deposit Returns

A return is Direct Deposit money which is returned to the County from the bank. When a cash assistance payment is returned, the following automatic CalSAWS process occurs:

The Issuance Status for the returned benefit will change from Issued to EFT Transfer Error on the Search for Issuance window.
The return EFT Reason Code and EFT Reason Description received from NACHA appear on the Display EFT Reasons window.
“Termination of Direct Deposit” (CSF 74) is generated to inform the recipient that they no longer have Direct Deposit.
Returned funds are automatically canceled and reissued as a paper warrant in the daily process after the next transmittal date.
1. Note: All future cash benefits will be issued via paper warrants.
2. Reminder: If the case would normally receive their cash benefits through EBT, the case must be changed back to EBT unless the client meets the qualifications for another EBT Cash Exemption. Change the Issuance Type on the Maintain Case Issuance Method window and the Status and Reason fields on the Capture EBT Exemption window accordingly.
Returns are reported on the MRC045R “EFT Bank File Report.”

Non-Receipt of Direct Deposit

The EW must take the following actions when a client reports the cash grant was not direct deposited into his/her bank account:

Confirm that the cash grant was issued as an EFT by viewing the Maintain Issuance Detail window.

Note: EFT Issuance numbers begin with T-Z.

Determine if the EFT benefits were held PRIOR to FME by viewing the Issuance Status on the Maintain Issuance Detail window.
View the Issuance Status in the [Issuance Status] field on the [Maintain Issuance Detail] window to determine if the EFT benefits rejected.
1. If EFT was rejected, contact the BI Unit @ Julian. Refer to Pre-Note Reject Actions.
2. Advise the client of the reason for the reject and that the grant will be issued automatically as a paper warrant.
  1. Note: If everything appears to be correct, the EW should advise the client to notify the financial institution that there is a problem with the account and Direct Deposit is not being accepted. The EW is also to notify the BI Unit @ Julian of the problem so they are aware of the situation and can do additional research or contact the financial institution, if necessary.
  2. Reminder: An NOA (CSF 74) is sent to the client when a EFT deposit is rejected by the financial institution.
Request a new “Direct Deposit Enrollment Form” (SCD 1948) from the client with corrected information, if the client wishes to continue Direct Deposit. Repeat steps for initiating Direct Deposit. Refer to Initiating Direct Deposit.
1. Reminder: If the client does NOT wish to continue with Direct Deposit, and the case would normally receive their cash benefits through EBT, the case must be changed back to EBT unless the client meets the qualifications for another EBT Cash Exemption. Change the Issuance Type on the Maintain Case Issuance Method window and the "Status" and "Reason" fields on the Capture EBT Exemption window accordingly.

Direct Deposit Changes

There may be instances when change codes are received from the ACH bank notifying CalSAWS about changes or discrepancies of the client’s bank information. When this happens it automatically starts the following process:

The Direct Deposit will be made however EFT will be terminated.
CalSAWS will update the Maintain EFT Detail window, if applicable, with the changed bank information.
The BI Unit @ Julian must notify the EW of what information is needed to continue Direct Deposit.
1. Note: The BI Unit @ Julian has a list of change codes on the MRC 046R report that indicate what information is needed.
“Change in Direct Deposit” (CSF 73) will be automatically generated and mailed to the client. The CSF 73 notifies the client that their deposit was made but that the financial institution notified the county that there was a change in the back account. It request the client contact their EW to complete a new SCD 1948 to re-initiate Direct Deposit.
1. Note: When the SCD 1948 is returned to the EW by the client, procedures must be followed to re-initiate the Direct Deposit. Refer to Initiating Direct Deposit.

Changing Direct Deposit Bank Accounts

If a client requests changing their existing Direct Deposit bank account to a new bank account, the EW must:

Inform the client that the approval process for EFT on the new account will take several weeks and in the mean time they must receive their benefits as either a warrant or through the EBT system.
Notify the BI Unit @ Julian of the request.
Delete the existing Direct Deposit by changing the Issuance Type on the Maintain Case Issuance Method window and establish the alternative method of issuance for benefits based on the client’s decision.
Obtain a new SC 1948 and follow procedures to initiate Direct Deposit. Refer to Initiating Direct Deposit.

Payee Changes

When an existing payee with Direct Deposit becomes a payee on a new case, he/she may request Direct Deposit on the new case.
A new SC 1948 must be obtained and the procedures to initiate Direct Deposit must be followed. Refer to Initiating Direct Deposit.