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Direct Deposit for State Disbursement Units

The following publication provides an overview of Direct Deposit for states. This information can be used to tailor a direct deposit program for custodial parents.  The publication contains information on how direct deposit works, marketing a direct deposit program, a sample authorization form and a cost/benefit analysis form.

To begin a Direct Deposit program the SDU must work with a financial institution to originate transactions. To identify the appropriate financial institution, contact the organization in your agency or state that handles payroll, since that office is already originating Direct Deposit transactions. In states that have a central payroll function, this is likely to be the State Treasurer.  By contacting the appropriate office you should be able to identify the bank contact that will be able to work with you in implementing a Direct Deposit program for custodial parent.  The state office that originates Direct Deposits should also be able to provide you information and possibly shared solutions on programming that has been done for that office. This contact may also be able to provide you insight on how to proceed with your own program.

The Guide to Implementing Direct Deposit was developed by the Mid-America Payments Exchange. We would like to thank them for letting us use their document.

Guide to Direct Deposit