What is an Automated Clearing House (ACH) Debit?
The ACH debit method allows you to transfer funds by authorizing us (the state) to electronically debit (electronically withdraw funds from) your bank account for the amount you report via our online system. Your account will be debited only upon your initiation, only for the amount you specify, and only on the date you specify.
The Department absorbs the cost for you to report an ACH debit payment. You will, however, be responsible for any fees your financial institution may charge you for the actual transfer of funds. It is highly unlikely that your banking institution will charge you a fee for an ACH debit to your account (provided there are funds available of at least the amount of the debit). But, be aware that it is likely that your bank's standard overdraft fees will also apply to ACH debits.
To make a payment by debit transfer, all you need to do is supply us with your banking information (i.e. your bank's Routing Transit Number (RTN) and your account number at your bank. It's just that simple!
All of the ACH standard formats are built into our system, so there is nothing else for you to have to purchase, or develop.