General Information

Electronic Funds Transfer/Electronic Data Interchange (EFT/EDI) technology allows employers to transfer child support wage withholdings to the North Carolina CSE program through North Carolina Child Support Centralized Collections (NCCSCC). To successfully implement EFT/EDI, your company must follow four major steps:

1. Programming changes to your payroll system.

2. Coordinating with your bank.

3. Coordinating the testing process

4. Developing written procedures to document the process.

Employers should call 1-877-280-3675 for general information about EFT/EDI or to request a packet with information on implementing and transferring child support withholdings by EFT/EDI.

State agencies that require assistance should call 1-919-255-3900.

Automatic Bank Drafts

Noncustodial parents (NCPs) who are not under an income withholding order have the option of making their child support payments through automatic bank drafts. However, NCPs cannot substitute payment by automatic bank draft for income withholding if their CSE cases qualify for withholding.

Automatic bank drafts withdraw funds from an NCP's checking or savings account using electronic funds transfer (EFT). The bank transmits the bank draft payment to NCCSCC, which transmits to the ACTS system, where these funds are posted, allocated, distributed, and disbursed to the appropriate payees.

Some advantages of automatic bank drafts are:

· The possibility of lost or misapplied payments is eliminated.

· The period of time is shortened between when a payment is made and when the funds are disbursed.

· Postage costs are eliminated.

· Payors can call their bank to verify the bank draft.

· Banks provide payors with a record of each bank draft from their account.

NCPs can schedule an automatic bank draft by completing a North Carolina Child Support Enforcement Automatic Withdrawal Authorization Form For Bank Draft. To obtain this form online, visit the eChild Support web site, select "Pay Child Support", and then select "Download Forms".

NCPs must indicate whether the funds should be drafted either on a MONTHLY or SEMI-MONTHLY basis, the desired day(s) of the month when funds should be drafted, and the amount to be drafted. A "voided" blank check from the financial institution where the funds are to be drafted or other form of verification of the account number and bank’s transit number also must be attached to the form.

Mail the form and attached materials to:

North Carolina Child Support Centralized Collections

PO Box 900020

Raleigh, N.C. 27675

Or fax the form and attached materials to: (919) 789-0140.

The NCCSCC processes these automated bank drafts. It takes ten (10) days to verify the routing and account numbers before the automatic bank draft takes effect.

During this time period, the NCP is still responsible for making child support payments that become due before the initial bank draft date. If the date when the NCP selects for the initial draft is on a weekend or holiday, the draft date is the next business day.

Upon the NCP's request, the NCCSCC can change or terminate automatic bank drafts from financial institutions. NCPs can request changes to or terminate their automatic bank drafts online by accessing the eChild Support web site. NCPs also can download the N.C. CSE Automatic Withdrawal Authorization Form For Bank Draft from this web site and mail or fax their request for changes or termination.

NCPs are still responsible for making their child support payments until the change to or termination of their bank draft occurs. NCPs should work with their banks to ensure that any outstanding bank drafts are honored during this transition period.

Refer any questions related to automatic bank drafts to NCCSCC Customer Service (1-877-361-5437).

Direct Deposit Services

North Carolina CSE offers direct deposit services. Direct deposit is the automatic deposit of the payee’s child support payments directly into his or her checking or savings account through electronic funds transfer (EFT).

When a payment is posted to the payee’s child support case, the bank is notified to credit the payee’s account with the payment. In most instances, the bank receives the payment within two (2) business days after the CSE applies the payment to the case.

Some advantages of direct deposit are:

· Mailing time is eliminated.

· Fewer trips to the bank.

· No lost or stolen checks.

· Safety and confidentiality.

· Payees can call their bank to verify the deposit.

· Banks provide payees with a record of each deposit to their account.

To sign up for direct deposit, complete and sign the Authorization For Automatic Deposit Of Child Support Form (English/Spanish) and attach some form of verification of your account number and the bank’s transit number. (This form can be downloaded if you have Adobe Acrobat Reader. If necessary, you can get a free download of this reader by visiting: http://www.adobe.com/products/acrobat/readstep2.html.)

Mail the form and attached materials to:

NCCSE-EFT

PO Box 19807

Raleigh, N.C. 27619

After receiving the authorization form, CSE contacts your bank to set up direct deposit. Please allow 3-4 weeks for direct deposit to take effect. Until then, your support checks will arrive by mail.

Many banks now offer a "debit card" account that can be used for direct deposit of child support. (Some banks have a different name for debit card accounts.) This service allows you to withdraw the child support through an ATM after it is deposited. A debit card account can be less expensive than a checking account. After establishing this account with your bank, you can sign up for direct deposit using the authorization form. Instead of attaching a blank check, please have your bank attach some form of verification of your debit card account number and the bank’s transit number.