General Information Manual

0150.005.00 Direct Deposit

IM-94 September 20, 2004

Provide all applicants and participants of Temporary Assistance cash with information regarding direct deposit. With direct deposit, cash benefits are deposited in a personal bank account instead of using the EBT card.

Bank matrixes are available in each county/area office.

Explain the advantages of direct deposit for the cash participant:

  • private control of money in his/her own account
  • no worry over an aged benefit
  • the ability to add money to the account
  • the State is not able to track how cash benefits are spent
  • money is available the first day of the month
  • the ability to pay bills electronically
  • less expensive with no charge for using the ATM card at the participant’s local bank

If the participant currently has a checking/savings account, an IM-20 is completed. For a joint account, list all names in the “comments” area.

There is a ten-day time frame for processing direct deposit requests. This is called the “Pre-Note” period. A paper check may be generated based on payroll closing dates.

If the participant doesn’t have a current bank account, but indicates s/he will open a bank account and requests direct deposit, the IM-20 is completed indicating the participant will open an account. If the participant opens a bank account, the bank notifies the Family Support Division about the new account.

If the participant does not open a direct deposit account within the 45-day holding period, advise him/her that an EBT card will be issued.

If no direct deposit account is established, benefits revert to the EBT account.

Advise participants to verify with the bank that benefits have been credited to their account as no deposit notification is issued.

Caseworkers can verify direct deposit using the IPAY issue numbers beginning with the prefix X and Y or by accessing DDIQ screen.

If the Temporary Assistance payment is a direct deposit, all cash payments to that individual will be by direct deposit, including:

  • Supportive Services Payments issued by FSD,
  • Blind Pension,
  • Supplemental Aid to the Blind, and
  • Supplemental Payments.

If the bank is unable to locate an account or if the account has been closed, the bank returns the payment to US Bank and the Family Support Division is notified. The direct deposit is canceled. Future payments are available through EBT. A “U” for undelivered is entered into the status column of IPAY. It is changed to “C” when the payment is canceled by the director of Budget and Finance. Participants with EBT cards will receive cash benefits, including the undelivered benefit, on the EBT card. Participants without an EBT card will have one issued with this benefit.

If a participant has an EBT card, then chooses direct deposit, the cash benefits remaining in the EBT account can be accessed by the participant even after direct deposit starts.