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CCD Entries (Cash Concentration or Disbursement Entry)
0Can be either a credit or debit application where funds are either distributed or consolidated between corporate entities.
Authorization/Notification Requirements
Authorization must comply with applicable legal requirements, by readily identifiable as an authorization, and have clear and readily understandable terms.
Company must obtain authorizations for both credit and debit entries.
Authorization must be maintained for two (2) years from the termination or revocation of the authorization and be made available within ten (10) business days upon request.
Receiver’s authorization may be obtained in any manner permitted by applicable legal requirements.
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.
Upon receipt of request for evidence of authorization, Originators must provide either (1) an accurate record evidencing the Receiver’s authorization, or (2) the contact information for the Originator that, at a minimum, includes (i) the Originator’s name, and (ii) the Originator’s phone number or email address for inquiries regarding authorization of entries. This record of authorization or contact information must be provided with ten (10) banking days upon request.
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 to provide an accurate record evidencing the Receiver’s authorization or the contact information, provide the record or information within ten (10) Banking Days of receiving the request. Authorization must be maintained and readily and accurately reproduced for two (2) years from the termination or revocation of the authorization.