TexPayment Resource

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Direct Deposit Payments Made in Error

A paying agency may determine that a direct deposit payment was made in error and requires corrective action. There are different procedures and timelines for correcting erroneous direct deposit payments based on the payment type, which may require a reversal or reclamation request.

In some cases, a payment may be canceled in the accounting system that issued it before it is transmitted to the automated clearing house (ACH) network. Once a payment is transmitted to the ACH network, a reversal or reclamation request may be submitted to attempt retrieval of the funds.

There are different procedures for vendor/travel reversals and payroll/annuity reversals. If the annuitant is deceased, submit a reclamation request to recoup retirement payments. A direct deposit payment may be returned automatically by the payee’s receiving depository financial institution (RDFI) if the payment cannot be posted because the account is closed, the payee is deceased, or other reasons. See Returned Money Items.

Agency Direct Deposit Contacts

Agencies must provide Payment Services with the following direct deposit contacts to ensure prompt communication for questions or issues regarding reversal or reclamation requests to ensure ACH timelines are met:

• Direct deposit bills contact(s) for vendor and travel payments.
• Direct deposit payroll contact(s) for payroll payments.
• Direct deposit annuity payroll contact(s) for annuity payments.

Submit the Contact List Update Form to update your agency’s direct deposit coordinators’ contact information. The Comptroller’s office recommends:

• Each agency set up a group email account (such as direct.deposit@agency.texas.gov) to ensure the agency receives prompt direct deposit notifications even when someone is out of the office.
• Each direct deposit contact set an out-of-office message with backup(s) contact information that alerts Payment Services to resend notifications to the backup(s).