About ACH, the Automated Clearing House

We refer in many places to “ACH,” the Automated Clearing House used by banks to move money bank to bank. You, your bank, or your payroll service may want more information to help you make decisions and manage your remittances to the KPC efficiently.

NACHA (National Automated Clearing House Associations) publishes the rules banks must follow with ACH transactions. NACHA has defined specific rules for child and spousal support payments, generally referred to as the ACH Convention for Child Support Withholding. They have a guide online, “User Guide For Electronic Child Support Payments,” which may be useful for setting up EFT transactions for support payments. This and other information about NACHA and ACH are available on the NACHA web site; click here to visit their page about child and spousal support transactions.

The ACH Convention for Child Support Withholding

A standard ACH file includes several record types (file header, company/batch header, entry detail, addenda, company/batch control, file control) and is somewhat complex. Most banks have employees familiar with ACH files in general, and they should have no trouble understanding the child support convention. Key elements are:

The entry detail record constitutes the financial transaction.
The addenda record provides details about each support payment.
The CCD+ format includes an addenda record for each entry detail record.
The CTX format includes one or many addenda records for each entry detail record.
There is a very specific format for data that is allowed or required to be within the addenda record, i.e., the data used to provide credit for support payments.

A booklet was developed by the Bankers EDI Council that explains the child support convention in detail. It is entitled “Child Support Application Banking Convention: A Guide for Child Support Enforcement Entities & Their Financial Institutions” and is available through NACHA.

For information about ACH origination software

Contact your local financial institution.
Contact your regional ACH association.
Contact NACHA.
Search the internet.

For assistance interpreting the format of the child support addenda record

Contact the Kansas Payment Center at 1-877-729-6367. Ask to be connected to the Employer EFT Coordinator.

For more information about ACH

Contact your local financial institution.
Contact your regional association of the National Automated Clearing House Association.
Contact the National Automated Clearing House Association (NACHA) at (703) 561-1100 or visit their web site at www.nacha.org
Attend a class. Regional clearing house associations provide periodic training sessions to promote the use of ACH.
Obtain a copy of the Electronic Payments Review & Buyers Guide published by NACHA.
Contact a treasury management association such as the American Payroll Association.

return to top of page