What is the difference between the ACH-Debit and ACH-Credit payment methods?
A taxpayer initiating an ACH-Debit transaction tells the Department how much money and when to take it from the their bank account to pay taxes due. On the date indicated by the taxpayer, the Department’s bank debits the specified amount from the taxpayer’s bank account. A taxpayer initiating an ACH-Credit transaction tells their bank how much money and when to send it to the Department’s bank account to pay taxes due. On the date indicated by the taxpayer, the Department’s bank credits its account with the specified amount. Differences between ACH-Debit and ACH-Credit are listed below. ACH-Debit ACH-Credit Cost to Taxpayer No additional processing fees apply Taxpayer pays all processing fees Responsibility for Test Transaction State is responsible Taxpayer is responsible Responsibility for Confirming Prenote Accuracy State is responsible Taxpayer is responsible Payment Transfer Request Deadlines 5:00 p.m.
A taxpayer initiating an ACH-Debit transaction tells the Department how much money and when to take it from the their bank account to pay taxes due. On the date indicated by the taxpayer, the Department’s bank debits the specified amount from the taxpayer’s bank account. A taxpayer initiating an ACH-Credit transaction tells their bank how much money and when to send it to the Department’s bank account to pay taxes due. On the date indicated by the taxpayer, the Department’s bank credits its account with the specified amount. Differences between ACH-Debit and ACH-Credit are listed below. ACH-Debit ACH-Credit Cost to Taxpayer No additional processing fees apply Taxpayer pays all processing fees Responsibility for Test Transaction State is responsible Taxpayer is responsible Responsibility for Confirming Prenote Accuracy State is responsible Taxpayer is responsible Payment Transfer Request Deadlines 5:00 p.m., ET, on the business day before the payment due date Varies – taxpayer must chec
