ACH - Vendor Direct Deposit

​​​​​The Automated Clearing House (ACH)/Direct Deposit is for payments to vendors for goods and services the State purchases, and recipients of state programs who wish to receive their payments by direct deposit into their bank account. ACH is the nationwide banking system that relays the funds from the State Treasury to a bank account electronically without paper or postage.

 

The Statewide Financial Management Application (SFMA) makes payments directly to a payee’s bank account with a two day transit period. The ACH process in SFMA saves time and money, reduces the risk of fraud and loss, and makes the reconciliation process easier as redemption occurs immediately. Each ACH payment saves the State about 46¢ compared to the cost of printing and mailing a warrant or check. The convenience of receiving payment by direct deposit has made this a welcome service.

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The ACH payment system has two popular features. First, the detailed payment information that is normally printed on the remittance advice attached to a check or warrant, is available on the Internet at a secure web site for use by the payees. By logging into the Payment Information Center, payees can review up to 18months of remittance activity. Second, when a payment order processes through SFMA an email message is sent to the payee giving notice that a payment order has been issued. The convenience of this email notice also increases security and helps with cash flow planning.

 

As long as the account is open and properly identified, the financial institution will accept the ACH payment order and credit the designated account. Payees are strongly encouraged to verify that payment credits to their account on the settlement date. (It will not occur sooner or later. If payment does not post to your account on the settlement date, please contact the ACH Coordinator). While the ACH network is highly reliable, human error and technology can bring surprises. Verify your account balance before making any commitment to spend the incoming funds.

​The ACH Network is a highly reliable and efficient nationwide electronic funds transfer system organized by the US Treasury under Federal law (31 C.F.R. Part 210, et al.). It is managed by the operating rules and guidelines of the National Automated Clearing House Association (NACHA). The ACH network provides for the interbank clearing of electronic debits and credits for participating depository financial institutions. The Federal Reserve System and a score of private organizations operate central clearing facilities through which participating financial institutions transmit or receive ACH entries. The US Government is the largest user of the ACH system. Virtually every bank and credit union in the country is capable of sending and receiving ACH payments. Examples of ACH debit and credit payments include:

• Direct Deposit of payroll, pension, Social Security, and other government benefits
• Federal, state and local tax refunds and payments
• Direct Payment of mortgages, installment loans, and insurance premiums
• Business-to-business payments
• Preauthorized bill payment where the amount varies such as utility bills
• E-commerce payments (initiated by customer via telephone or Internet)

Please contact NACHA for further information about the ACH network and the membership organization.

​​A check is a demand draft that is due immediately upon presentation for payment. A warrant is a promise to pay and is due only if cash is available at the time of presentation. What are the benefits of electronic payments?  Some of the benefits of electronic payments include:

• Savings in the cost of checks or warrants, postage, and envelopes
• Increases workplace efficiency
• Increases security and reduction of errors
• Eliminates lost/stolen checks or warrants
• Improves cash flow for vendors
• Improves timing and certainty of payment
• Acknowledged receipt
  

​​​Electronic pa​yments are safer than warrants. They eliminate the following issues:

• ​Forged checks or warrants
• Lost-in-transit checks or warrants
• Stolen checks or warrants
• Stop Pay/cancel checks or warrant requests

Settlement occurs when the acquiring bank and the issuing bank exchange funds. Normally, the transaction posts to your account early on the morning of the settlement day. Settlements for ACH payments from the State of Oregon are coordinated through the Oregon State Treasury and the US Treasury's Federal Reserve Banking System. Once banking information has completed the process in SFMA, the transit time for a payment is two banking days. 
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​​When the State makes a payment by warrant, a tear-off section is attached to the payment. This tear-off section is called a remittance advice. It contains a simple explanation of the reasons for the payment, including invoice numbers and transaction line item descriptions.

 

For ACH payments made through SFMA, the remittance advice data is available online at Payment Information Center.

 

For simple one-line transactions, some or all of this payment information will show up on your monthly bank statement. When several payments combine, your bank statement will display the following: “See https://pmtinfo.das.state.or.us for payment details.”​

​​​​​​When a payment processes, an email message is sent to the payee. That message is similar to the one shown below:

 

A payment order from the State of Oregon has been sent to your financial institution for credit to your account in two banking days. If payment is not received please contact the ACH Coordinator at 

(971) 900-9771, or send an email to: ach.coordinator@das.oregon.gov.

 

Additional information about this payment

Example:

Employment Department (503) XXX-XXXX

PAYMENT NUMBER: 950888999

 

When you receive the email message you can login to the Payment Information Center and verify the intended settlement date of the payment.

​The Payment Information Center is available 24/7 and is updated by 8:00 a.m. each day except for once a month during maintenance. If you try to access the data base then, you will receive a message telling you it is down for maintenance. Maintenance usually lasts 90 minutes.

 

A User ID is required to access the Payment Information Center. A User ID will be emailed to you after your account has been setup for direct deposit. You will need to establish a password after receiving the User ID. Please note this site is case specific, "baker123" is not the same as "Baker123" because "b" is not the same as "B". If you are having trouble logging on the web site, check to see if you are using the proper combination of upper and lower case letters. Check the Caps Lock key.  Contact the ACH Coordinator for User ID issues.  If you forgot your password, click on the “forgot password” button. 

​​​​​If you have questions concerning the amount paid or any of the payment details, contact the agency that made the payment. The contact phone number is listed on the Payment Information Center website. If you have questions regarding the electronic transmission of payments to your account, contact  ach.coordinator@das.oregon.gov.

​The Payment Information Center is available for Edge, Chrome and Firefox. 

​To get the Remittance Advice data to print well on the page you must change the printing orientation to landscape. Remember that remittance activity is no longer available after 18 months.

Most browsers will allow you to highlight the data, click Edit, Copy and then paste the selection into a word processing document to print.

​If a payment order is sent through the ACH network but not accepted by your financial institution, it will be returned to the State Treasury. The paying Agency receives notification that this has occurred and a check will be mailed to you at the last known address. This delays the payee's receipt of the payment by a week or more. Late charges are not added to the payment since the delay was beyond the State’s control. All subsequent payments are mailed to that same address. To reinstate ACH payment service, you must send a new Direct Deposit Authorization Form to the ACH Coordinator with your new banking information.

​​New processing requirements went into effect September 18, 2009, for electronic vendor payments that are being sent to a financial institution outside of the United States. These requirements are a recent amendment to the Electronic Payments Association (NACHA) ACH Operating Rules and referred to as the International ACH Transactions rules. If our payments to you are being forwarded from a U.S. financial institution to a financial institution in another country, please advise the Foreign Vendor Accountant. We currently do not place foreign vendors on direct deposit.

​​ACH (Automated Clearing House) – a central distribution and settlement point for clearing the electronic credit and debit transactions between financial institutions.

 

ACH payment – a payment made to a payee by way of direct deposit to the payee's bank account as an alternative to issuing a warrant or check.

 

Addendum Record – an ACH record type that carries supplemental data needed to provide information concerning an ACH payment.

 

Banking Day – any day on which financial institutions are open for business with the public.

 

Credit Entry – an electronic funds transfer that the State initiates to deposit funds into an EFT account.

 

Debit Entry – a reversal of a credit entry.

 

NACHA – National Automated Clearing House Association – sets the operating rules and procedures for users of the ACH direct deposit system.

 

Payee – an individual, entity or state employee that receives a payment from the State of Oregon.

Payment Information Center – Remittance website for viewing Direct Deposit payments.  Payees can view up to 18 months of remittance activity.

 

Paying State Agency – The State agency that initiates a payment.

 

Prenote Record – a $0.00 test transmittal of each payee's direct deposit information. Prenotes are sent for setups and changes of bank information. 

 

R*STARS – Relational Statewide Accounting and Reporting System. R*STARS is part of the Statewide Financial Management Application (SFMA).

 

Rules – the requirements of the National Automated Clearing House Association and Federal Reserve System's Regulation E.

 

Settlement Date – the date the payee's financial institution credits the payee's individual account.

 

State – the State of Oregon.

 

State Agency – any entity in the Executive, Legislative, or Judicial branch of state government.