What Are Electronic Funds Transfer (Eft) And Electronic Data Interchange (Edi)?

Traditionally, child support agencies have received by mail the payments you withheld. Today, however, a number of State child support agencies are offering a new service that will enable you to submit child support income withholdings electronically using Electronic Funds Transfer/Electronic Data Interchange (EFT/EDI). EFT is a process that electronically transfers dollars from one bank account to another. EDI transfers information. In child support applications, EFT/EDI is used to simultaneously transfer child support payments and remittance information to State child support agencies. Using EFT/EDI has proven to be faster and more efficient than mailing paper checks and hardcopy remittance. It saves postage and administrative processing costs and reduces the chances of error. The savings to State child support agencies are significant as well. If you are interested in using EFT/EDI to submit income withholdings, you should contact the State child support agencies to which you send income withholdings. There is a specific format for EFT/EDI child support payments. Formats for sending the information have been developed by the Bankers EDI Council of the National Automated Clearing House Association (NACHA). These formats specify how employers and payroll companies will electronically send the information and the capability that the State must have to receive the information. Support for centralized collections and EFT/EDI comes from groups such as the Employer Coalition on Child Support Enforcement and the American Payroll Association. EFT/EDI can make child support income withholding much easier for you. At your option, child support funds can be electronically remitted via EFT from your bank to the State Disbursement Unit. All the necessary information (case identifiers, date of withholding, etc.) is sent along with the electronic payments via EDI. EFT/EDI is now available in the State of Maryland.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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