What is the difference between ACH debit and ACH credit?
ACH Debit – you call a toll-free telephone number and provide specific information which authorizes the State to debit your account and credit the State’s bank account. This type of transaction is simple and there is no cost to you. (Unless your financial institution charges a fee for the actual transfer of funds.) ACH Credit – you instruct your financial institution to debit your account and credit the State’s bank account. For this type of transaction you must ensure your financial institution has the ability to send ACH credit transactions in the required format. There are normally set-up and transaction fees for which you are responsible.
The difference between ACH debit and ACH credit is the way the transaction is initiated. An ACH debit transaction is initiated by notifying the state using either our TelePay or WebPay systems. The state debits your account. The state does not charge for ACH debit transactions. An ACH credit transaction is initiated through your financial institution, which transmits the funds to the state´s account. The state does not charge for ACH credit transactions. However, your financial institution may charge various fees for initiating ACH credit transactions.
ACH Debit – you initiate a payment by Internet or telephone to authorize the State to debit your account and credit the State’s bank account. These transactions are simple and there is no cost to you, unless your financial institution charges a fee for the actual transfer of funds. ACH Credit – you instruct your financial institution to debit your account and credit the State’s bank account. For this type of transaction you must ensure your financial institution has the ability to send ACH credit transactions in the required format (see ACH credit specifications). There are normally set-up and transaction fees for which you are responsible.
