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Direct Deposit Procedures-TAFDC

TAFDC benefits can be issued via EBT or direct deposit. Using Direct deposit:

  • reduces the risk of fraudulent activity,
  • saves money by eliminating the fees associated with accessing benefits from an EBT card at an Automated Teller Machine (ATM),
  • allows clients to pay bills online using the debit card associated with their bank account, and
  • eliminates any stigma associated with using an EBT card.

TAFDC clients with a bank account are required to receive their benefit by direct deposit. To establish direct deposit a client must complete the Direct Deposit form and you must enter some information into BEACON.

The Direct Deposit form automatically populates as an addendum to the VC-1 once an account type is entered on the Liquid Asset page entered in the case maintenance workflow.

Grantee Not Required to be on Direct Deposit

A TAFDC grantee who has a bank account is not required to be on Direct Deposit when they:

  • are not able to access public transportation within one mile of their residence or within one mile of the financial institution because the public transportation does not exist, or due to lack of funds, safety concerns, or a disability,
  • are a survivor of domestic violence whose abuser is the co-owner of the account or the account is otherwise inaccessible or unsafe to use due to domestic violence, or
  • report other safety or security concerns.

If a client expresses any other concerns with utilizing direct deposit these should be forwarded to the procedural issues mailbox before a sanction is entered.

If the client indicates they have a bank account, you must have a conversation with them to determine whether they can safely and securely receive their benefits through direct deposit. If the client indicates a good cause reason for not using direct deposit they are not required to do so. If after initially agreeing to direct deposit the client does not submit the Direct Deposit form, you must attempt to reach the client to discuss this to prevent the need for a sanction.

A sanction must not be entered if you have not discussed potential good cause reasons for not using direct deposit with the client.

Establishing Direct Deposit

Once the Direct Deposit form is received, on the Liquid Assets page:

  • enter the account number and routing number,
  • ensure the bank name is correct, and
  • satisfy the direct deposit verification element on the Verification tab.

The bank account will then be available for selection on the Benefit Issuance Mechanism page.

To establish direct deposit for a client, go to the Benefit Issuance Mechanism page in the Program Administration workflow.

You must:

  1. select the cash assistance program (TAFDC),
  2. click Yes on the Direct Deposit radio button to establish Direct Deposit. This will make the Institution Information box available for edit,

    1. Note: To change a client from Direct Deposit to EBT click No on the Direct Deposit radio button

  3. select the account and institution from the Institution Information drop-down list. The Name, Type, Account number, and Routing number information will display under Institution. The Institution Information drop-down list only contains information on checking and savings accounts listed in the Liquid Assets page, and

    1. Note: If the information in the Liquid Assets page is not a checking or savings account, is not yet verified, or is missing, the information will not appear in the Institution information drop-down list

  4. click Save and then Finish. 

Important: You can only ask clients about bank accounts for Direct Deposit purposes. The account balance must always be entered as $0.00.

Changing the Account or Institution for the Direct Deposit

When a client submits account change information, prior to taking any action, you must review all bank information identified on the Benefit Issuance Mechanism page.  If the account information has been updated by the Finance Unit, no further action is required.  If a client wants to change the account, bank or institution to which direct deposits are made and the information has not been updated by the Finance Unit, a two-day process is required.

On Day One, you must:

  1. add the account in the Liquid Assets page if it is not already there. Include the name of the institution, type of account, account number and routing number, and
  2. click No on the Direct Deposit radio button

Note: Be sure the account information has been satisfied on the Verification tab so the Institution Information will be available in the drop-down list on the Benefit Issuance Mechanism page.

On Day Two, you must:

  1. click Yes on the Direct Deposit radio button
  2. select the institution and account from the Institution Information drop-down list

Last Update: December 7, 2023

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