9. Forms Green Book

A Guide to Federal Government ACH Payments 8-1

8 Glossary 

Actual or Constructive Knowledge

Under Title 31 CFR part 210, both agencies and RDFIs have obligations, rights and liabilities that 

are triggered by actual or constructive knowledge of the death or incapacity of a recipient or death 

of a beneficiary. 

Actual or constructive knowledge, when used in reference to a federal agency’s or RDFI’s 

knowledge of the death or legal incapacity of a recipient or death of a Ƥǡ occurs when it 

receives information, by whatever means, of the death or incapacity and has had a reasonable 

opportunity to act on such information, or that the federal agency or RDFI would have learned of 

the death if it had followed commercially reasonable business practices. 

A federal agency is presumed to have constructive knowledge of a death or legal incapacity at the 

time it stops certifying recurring payments to a recipient if the agency (1) does not re-initiate 

payments to the recipient and (2) subsequently initiates a reclamation for one or more benefit 

payments made to the recipient. 

Agency

As defined in Title 31 CFR part 210, an agency is any department, agency, or instrumentality of the 

United States Government, or a corporation owned or controlled by the Government of the United 

States. The term agency does not include a Federal Reserve Bank (FRB). 

Annuitant

An annuitant is a retired federal employee or their survivor who is receiving payments from the 

Ƥ of Personnel Management; a retired railroad employee, their spouse, or their survivor who is 

receiving payments from the Railroad Retirement Board; a retired military service person, their 

spouse or their survivor who is receiving payments from a military service. 

Annuity

An annuity is a recurring payment made to a retired individual, their survivor or spouse. 

Automated Clearing House (ACH)

As defined in Title 31 CFR part 210, ACH is a funds transfer system governed by Nacha, formerly 

NACHA – The Electronic Payments Association, Operating Rules and Guidelines which provides for 

ƤǤ
8. Glossary Green Book

8-2 A Guide to Federal Government ACH Payments

ACH Non-Receipt Claim

An Automated Clearing House (ACH) non-receipt claim is a research method where a government 

disbursing Ƥ representative will contact a Ƥnancial institution, by telephone, email or facsimile 

to resolve a payee’s claim that they did not receive an ACH payment. 

Automated Clearing House (ACH) Rules

As defined in Title 31 CFR part 210, the Automated Clearing House (ACH) rules are the Operating 

Rules and the Operating Guidelines published by Nacha, formerly NACHA – The Electronic 

Payments Association, a national association of regional member clearing house associations, ACH 

Operators and participating Ƥnancial institutions located in the United States. 

Automated Clearing House (ACH) 45-Day Amount

The Automated Clearing House (ACH) 45-day amount is the dollar amount of all the ACH payments 

received within 45 calendar days following the death or legal incapacity of a recipient or the death 

ƤǤ

Automated Enrollment (ENR)

An Automated Enrollment (ENR) is a non-monetary entry sent through the ACH by any Receiving 

Depository Financial Institution (RDFI) to a federal government agency participating in the ENR 

program for the purpose of transmitting Direct Deposit enrollment information. 

Automated Standard Application for Payments (ASAP)

The Automated Standard Application for Payments (ASAP) is a recipient-initialized payment and 

information system, designed to provide a single point of contact for the request and delivery of 

federal funds. 

Authorizing Agency

An authorizing agency is the federal agency that authorized the initiation of the payment. 

Banking Day

With reference to a Ƥnancial institution, a banking day is any day on which such Ƥnancial institution 

is open to the public during any part of such day for carrying on substantially all of its banking 

functions, and, with reference to an Automated Clearing House (ACH) Operator, any day on which 

the appropriate facility of such ACH Operator is being operated. 

Beneficiary

As defined in Title 31 CFR part 210, a beneficiary is a natural person other than a recipient who is 

entitled to receive the Ƥ of all or part of a benefit payment. To illustrate, in a situation where 

there’s a representative payee, the representative payee is the recipient and the beneficiary is the 

person on whose behalf the representative payee is managing the payment. 

Benefit Payment

As defined in Title 31 CFR part 210, a benefit payment is a payment for a federal entitlement 

program or for an annuity, including, but not limited to, payments for Social Security, Supplemental 

Security Income, Black Lung, Civil Service Retirement, Railroad Retirement annuity and Railroad 
A Guide to Federal Government ACH Payments 8-3

Green Book 8. Glossary

Unemployment and Sickness Ƥǡ Department of Veterans Affairs Compensation and Pension, 

and Worker’s Compensation. 

Business Day

A business day is a calendar day other than a Saturday, Sunday, or a federal holiday. 

Claim Number

A claim number is a number which Ƥ the recipient’s or Ƥǯ records at the federal 

agency that authorizes the payment; often a SSN or an equivalent Ƥ number. 

Claim Number Prefix

A claim number prefix is a one or more alpha character(s) that precedes a claim number. These 

letters indicate the type of claim for which Ƥ are being paid. 

Claim Number Suffix

A claim number suffix is a one or two alphanumeric character that follows the claim number. These 

ƤǤ

Corporate Credit or Debit Entry (CCD)

Corporate Credit or Debit Entry (CCD) is a corporate Automated Clearing House (ACH) format 

consisting of one detailed payment record and one addenda record. The Fiscal Service uses this 

format primarily to process vendor payments. 

Corporate Trade Exchange (CTX)

A Corporate Trade Exchange (CTX) is a corporate Automated Clearing House (ACH) format 

consisting of one detailed payment record with up to 9,999 addenda records. The CTX format is 

used to transmit information in the American National Standards Institute (ANSI) X12 electronic 

data interchange (EDI) syntax. 

Death Notification Entry (DNE)

A Death Notification Entry (DNE) is a notice to a Receiving Depository Financial Institution (RDFI) 

of the death of a Receiver. Only a federal government agency may originate a DNE entry. 

Direct Deposit

Direct deposit is an electronic funds transfer made through an ACH credit entry to a checking or 

savings account. 

Discretionary Allotment

A discretionary allotment is an amount permitted by the employing federal agency to be deducted 

from a federal government employee’s net salary amount and paid to a recipient. The amount of 

discretionary allotments may not exceed the net pay due the employee for each pay period after all 

deductions required by law are subtracted. 
8. Glossary Green Book

8-4 A Guide to Federal Government ACH Payments

Effective Entry Date

ƤȋȌ

intends a batch of entries to be settled. For debit entries, the effective entry date is one banking day 

following the processing date. 

Electronic Federal Tax Payment System (EFTPS)

The Electronic Federal Tax Payment System (EFTPS) is a system through which taxpayers remit 

federal tax payments electronically. 

FastStart

FastStart is an abbreviated Standard Form (SF) 1199A form used to enroll and/or make changes to 

Direct Deposit information. 

Federal Payment

As defined in Title 31 CFR part 210, a federal payment is any payment made by an agency. The term 

includes, but is not limited to: 

(1) federal wage, salary, and retirement payments; 

(2) vendor and expense reimbursement payments; 

(3) Ƥ payments; and 

(4) miscellaneous payments including, but not limited to, interagency payments; grants; loans; fees; 

principal, interest, and other payments related to United States marketable and nonmarketable 

securities, overpayment reimbursements; and payments under federal insurance or guarantee 

programs for loans. 

Federal Reserve Bank (FRB)

A Federal Reserve Bank (FRB) is a regional bank of the Federal Reserve System, which serves as the 

ǯǤ	ǯƤǡ

electronic payments for the federal government, and handle federal government deposits and 

checks. 

Financial Institution

As defined in Title 31 CFR part 210, a financial institution is a bank, savings bank, saving and loan 

association, credit union or similar institution. 

Flagging

Flagging is the automated marker on an account indicating that one or more account holders is 

deceased, and that all future federal payments for that account should be returned. 

Financial Organization Master File (FOMF)

A Financial Organization Master File (FOMF) is a master list of Ƥnancial institutions receiving 

federal government Automated Clearing House (ACH) payments. It contains routing numbers 

ȋȌƤǤ

Government Entry

A defined in Title 31 CFR part 210, a government entry is an Automated Clearing House (ACH) 

credit or debit entry or entry data originated or received by an agency. 
A Guide to Federal Government ACH Payments 8-5

Green Book 8. Glossary

Government Disbursing Office

A government disbursing office is a federal government Ƥ that disburses payments on behalf of 

an authorizing federal agency. 

Legal Incapacity

Legal Incapacity is a legal declaration that an individual is unable to manage their affairs properly. 

Limited Liability Amount

The sum of the account balance and the Automated Clearing House (ACH) 45-day amount. The 

limited liability amount is the Ƥnancial institution’s liability for Ƥ payments if funds have been 

withdrawn from the account after the death or legal incapacity of a recipient or death of a 

ƤǡƤǤ

amount may not exceed the outstanding total. 

Lockbox

A lockbox is a collection and processing service provided by a financial agent that accelerates the 

flow of funds to Treasury's General Account, and processes associated data. This service includes 

collecting the agency's mail from a specified post office box; opening envelopes, extracting, sorting, 

and batching the envelope contents; scanning and capturing required data from payment 

instruments and remittance documents; balancing and totaling batches; recording the payments; 

processing the items; making the deposit; and transferring the funds. Agencies receive remittance 

data either in hard copy or via electronic format. 

Misdirected Payment 

A misdirected payment occurs when an agency has originated an ACH credit entry to an account that is 

not owned by the payee whose name appears in the ACH payment information.

Nacha

Nacha is a membership association (previously known as the "NACHA – The Electronic Payments 

Association") which manages the development, administration, and governance of the Automated 

ȋȌƤǤ

Notice of Reclamation

As defined in Title 31 CFR part 210, a notice of reclamation is a notice sent by electronic, paper, or 

other means by the federal government to a Receiving Depository Financial Institution (RDFI) 

ƤƤth or legal incapacity of a 

recipient or death of a Ƥǡ and for which the financial institution may be wholly or partially 

liable. 

Originating Depository Financial Institution (ODFI)

The Originating Depository Financial Institution (ODFI) is the Ƥnancial institution which delivers 

Automated Clearing House (ACH) entries directly or indirectly through a third party to its ACH 

Operator. 

Outstanding Total

As defined in Title 31 CFR part 210, an outstanding total is the sum of all Ƥ payments received 

by a Receiving Depository Financial Institution (RDFI) from an agency after the death or legal 

Ƥǡǡ

by, the federal government. 
8. Glossary Green Book

8-6 A Guide to Federal Government ACH Payments

Prearranged Payment and Deposit (PPD)

Prearranged Payment and Deposit (PPD) is the Automated Clearing House (ACH) format used by 

the federal government for consumer payments. 

Reclamation

A reclamation is a procedure to recover from a financial institution the amount of federal 

government recurring Ƥ payments that were paid to a financial institution’s customer through 

the automated clearing house (ACH) after the death or legal incapacity of a recipient or the death of 

ƤǤ

Receiving Depository Financial Institution (RDFI)

For the purposes of the Green Book, Receiving Depository Financial Institution (RDFI) is the 

Ƥnancial institution that receives the payment. 

Recipient

As defined in Title 31 CFR part 210, a recipient is a natural person, corporation, or other public or 

private entity that is authorized to receive a federal payment from an agency. 

Representative Payee

A representative payee is a person or institution authorized by an authorizing federal agency to 

accept payments for the Ƥ of one or more other persons, such as legally incapacitated adults 

or dependent children. 

Third-Party Processor/Third-Party Service Provider

A third-party processor or third-party service provider is a company that receives and processes 

Automated Clearing House (ACH) transaction data for a Ƥnancial institution. 

Trace Number

Ƥ-digit number assigned by the Originating Depositary Financial 

Institution (ODFI) to uniquely identify an Automated Clearing House (ACH) entry. The Ƥrst eight 

digits are the ODFI’s routing number, and the last seven digits are the unique item number. The 

Ƥ

included in each Entry Detail, Corporate Entry Detail, and Entry Detail Addenda Record. 

Trace Request (FS Form 150.1)

A trace request is a form sent by the government disbursing Ƥ to a Ƥnancial institution 

reporting a non-receipt claim by a payee for an Automated Clearing House (ACH) payment. 

TreasuryDirect

TreasuryDirect is a book-entry securities system in which investors’ accounts of book-entry 

Treasury marketable securities are maintained. It is designed for investors who purchase Treasury 

securities and intend to hold them until maturity. 
A Guide to Federal Government ACH Payments 8-7

Green Book 8. Glossary

Treasury Financial Manual

As defined in Title 31 CFR part 210, the Treasury Financial Manual (TFM) is a manual issued by the 

Fiscal Service containing procedures to be observed by all agencies, Federal Reserve Banks (FRB), 

ƤǡǡǡƤ

reporting, and other government-ƤǤ

Vendor Payment

A vendor payment is the electronic transfer of funds and payment-related information used by the 

federal government for payments to businesses that provide goods and services.