Electronic Funds Transfer/Electronic Data Interchange
Electronic Funds Transfer/Electronic Data Interchange (EFT/EDI) technology allows employers to transfer child support wage withholdings to the NC CSS program through NC Child Support Centralized Collections. To successfully implement EFT/EDI your company must:
- Make programming changes to your payroll system.
- Coordinate with your bank.
- Coordinate the testing process
- Develop written procedures to document the process.
Employers should call 1-877-280-3675 for general information about EFT/EDI or to request information on implementing and transferring child support withholdings by EFT/EDI. State agencies that require assistance should call 919-855-4755.
Automatic Bank Draft
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 CSS 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 Automated Collection and Tracking System (ACTS), 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 NC Child Support Automatic Withdrawal Authorization Form for Bank Draft. To obtain this form online visit the eChild Support website, select “Parents,” then 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, NC 27675
The form and materials can also be faxed to 919-733-2784.
The NCCSCC processes these automated bank drafts. It takes 10 days to verify the routing and account numbers before the automatic bank draft takes effect.
During this time 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 website. NCPs can also download the NC CSS Automatic Withdrawal Authorization Form for Bank Draft from the website 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.
For questions related to automatic bank drafts call NCCSCC Customer Service: 1-877-361-5437
Direct Deposit Services
NC CSS 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 business days after the CSS 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. You can also submit the form and documents electronically via the eChild Support Portal by visiting www.ncchildsupport.com.
Mail the form and materials to:
PO Box 19807
Raleigh, NC 27619
After receiving the authorization form CSS contacts your bank to set up direct deposit. Please allow three to four weeks for direct deposit to take effect. Until then your support checks will arrive by mail.
Many banks 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.
The ncKIDScard (debit card) program replaces paper checks for custodial parents who meet the enrollment criteria and have not authorized direct deposit. Payments from the NCP are deposited automatically into the custodial parent's ncKIDScard account where custodial parents can access the funds by using a VISA debit card that is issued to them.
An ncKIDScard is safer than paper checks and allows custodial parents to:
- Make purchases wherever VISA debit cards are accepted.
- Get cash back at retail stores that accept VISA debit cards or get cash from automated teller machines.
- Receive free point-of-sale transactions at all retail locations that accept VISA debit cards worldwide.
- Avoid check cashing fees.
- Receive payments faster.
- Obtain account information through the Internet.
- Receive free monthly statements.
Some custodial parents are excluded from enrollment in the ncKIDScard program such as those who are already receiving their child support payments through direct deposit. NC CSS provides custodial parents with additional information about the ncKIDScard program when they apply for CSS services.