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CCD Entries (Cash Concentration or Disbursement Entry)
Can be either a credit or debit application where funds are either distributed or consolidated between corporate entities.
Authorization/Notification Requirements
Must be authorized in writing.
Company must obtain authorizations for both credit and debit entries.
Authorization must be maintained for two years from the termination or revocation of the authorization and be made available within 10 banking days upon request.
The business Receiver must authorize all ACH credits and debits to its account. The Receiver of CCD entries to non-consumer accounts must also enter into an agreement with the Originator under which the Receiver has agreed to be bound to the NACHA Operating Rules. The nature of the agreement for corporate transactions can vary depending upon the complexity of the application and the relationship between the Originator and the Receiver.
Originators of corporate debits to Receivers other than their own subsidiaries need to be aware of the sensitivity of this application. Many corporate Receivers are reluctant to allow debit activity to their accounts; therefore, it is imperative that the agreement that supports this type of activity is complete and accurate. Originators may be required to provide some proof that debit activity was, in fact, authorized if a transaction is questioned by the Receiver.
Responsibilities of Originators
As an Originator, it's crucial to understand and fulfill your responsibilities when initiating CCD entries. To ensure compliance with the rules and regulations governing CCD transactions, follow these key steps:
Prompt Response to RDFI Requests: When the RDFI (Receiving Depository Financial Institution) submits a written request for a copy of the contract, provide a clear copy within ten Banking Days of receiving the request. This must be done if the request is received within two years of the Settlement Date of the CCD Entry.