Form 150-206-030 - Ach Credit Electronic Funds Transfer Program Guide (Page 11 of 12) in pdf

Glossary of Terms

ACH. “Automated Clearing House” (ACH) means

reserve banks and member depository institutions

any entity that operates as a clearing house for elec-

that are subject to Reserve requirements.

tronic debit or credit entries pursuant to an agree-

NACHA. The “National Automated Clearing House

ment with an association that is a member of the

Association” is the organization that establishes the

National Automated Clearing House Association.

standards, rules and procedures enabling depository

ACH Credit. The “ACH Credit” is a method by

financial institutions to exchange ACH payments on

which money is transferred electronically through

a national basis.

the Automated Clearing House (ACH) network. An

ODFI. The “Originating Depository Financial Insti-

ACH credit transaction is one in which you, the tax-

tution” is the organization that originates ACH en-

payer, through your bank, originate an entry credit-

tries at the request of, and by agreement with, its

ing the designated bank account and debiting your

customers. ODFIs must abide by the provisions of

own account for the amount of the tax payment.

the NACHA Operating Rules and Guidelines.

ACH Debit. An “ACH Debit” transaction is one in

Pre-note Test. A pre-notification (pre-note) test is

which you, the taxpayer, through the Oregon De-

a zero-dollar entry sent through the ACH network

partment of Revenue’s TelePay system (data collec-

to verify banking information. A pre-note test must

tor), initiates an entry by telephone, crediting the

be done at least 10 calendar days before EFT pay-

state’s designated bank account and debiting your

ments begin.

own account for the amount of the tax payment.

Settlement Date. The date an exchange of funds,

CCD+. “Cash Concentration or Disbursement Plus

with respect to an entry, is reflected on the books

Addenda” is a standard National Automated Clear-

of the Federal Reserve Bank.

ing House Association data format used to make

TXP. The “tax payment” banking convention record

ACH credit/debit transactions. The CCD+ format

format containing the data format, contents and

combines the widely used CCD format with a single

implementation suggestions enabling a taxpayer to

addendum record that can carry 80 characters of pay-

make tax payments through the Automated Clear-

ment-related data known as the TXP.

ing House using the ACH Credit method. This con-

EFT. “Electronic Funds Transfer” is a term that iden-

vention is to be used with the NACHA CCD+ for-

tifies any system used to transfer payments or funds

mat. TXP is used by the majority of states utilizing

electronically. EFT refers to any transfer of funds,

EFT for tax collection. The format is carded in the

other than a transaction originated by check, draft

80-character free-form field of the addendum record.

or similar paper instrument, that is initiated through

The TXP convention has been developed with in-

an electronic terminal, telecommunications instru-

put from corporate trade associations, state repre-

ment, computer or magnetic tape, to order, instruct

sentatives and federal government agency represen-

or authorize a financial institution to debit or credit

tatives. The TXP convention is a result of the joint

an account.

efforts of the Federation of Tax Administrators, the

Committee on State Taxation and the Bankers Elec-

FRB. “Federal Reserve Bank” is the central banking

tronic Data Interchange (EDI) Council.

system of the United States, consisting of 12 regional

Form 150-206-030 - Ach Credit Electronic Funds Transfer Program Guide Page 11

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