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Electronic Funds Transfer - Automated Clearing House (ACH) Credit

The ACH Credit method allows you to transfer funds by instructing your financial institution to debit your account and credit the state's bank account. 

Cost

You must pay the fees charged by your financial institution for any set-up costs and for each ACH Credit transaction initiated.

Record formats

In order to report your tax payment correctly, your financial institution must originate your payment using the Cash Concentration or Disbursement plus Tax Payment Addendum (CCD+/TXP) format. This is the standard format that has been adopted for tax payments by the National Automated Clearing House Association (NACHA). After you submit an Authorization Agreement for Electronic Funds Transfer (FTB 3815) registering for the ACH Credit method, FTB will provide the record formats and FTB bank account information.

Before you select the ACH Credit method, check with your financial institution to confirm that they can originate an ACH Credit transaction in the required record format as shown on the TXP Addendum Record (FTB 3842A).

How to report a payment

Since your financial institution will originate your payment, you should contact them for specific procedures to follow to report a tax payment.

If you are making payments to more than one California state department, please note that each tax department has its own bank account number and requests different information in the free form area of the Tax Payment (TXP) Addendum Record.

When to report a payment

To be timely, your tax payment must settle into the state's bank account by the first banking day following your tax payment due date. You must check with your financial institution to determine when you should originate your payment so that it will settle into the state’s bank account on time.

The state cannot guarantee timely settlement for an ACH Credit transaction.

Verification of payment

If proof of payment is required, it is your responsibility to work with your financial institution to obtain verification that funds were transferred from your account to the state's account.

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