Common use of Electronic Payment Options Clause in Contracts

Electronic Payment Options. Illinois' Electronic Funds Transfer program offers one method for electronic payment and one for emergency backup: Automated Clearing House Credit (ACH credit) Fedwire – for emergency backup only Following is a brief explanation of the two payment options. To use the ACH credit option, you initiate a credit by instructing your bank to transfer the tax due from your account to the IDES account. Your bank will then insert a "trace number" into the payment transaction to be used as payment verification. In addition to the payment amount, taxpayer account posting information is sent with the funds transfer using the CCD+ format. A copy of the CCD+ standard format is included in this packet. The ACH credit must be initiated at least on the due date of the quarterly report or earlier in order for the funds to be available on the due date. We recommend you contact your bank to determine what ACH services they offer. This option is being offered by the IDES only as a backup method. If for some reason you are unable to initiate your ACH credit on or prior to the due date, this is the only electronic alternative available to avoid late payments and interest. If you find you must use this backup method, your bank must initiate the Fedwire on the tax due date. Fedwires do have costs associated with them for both the initiator and the receiver. If you use this option, you will be required to pay all fees. To effectively credit the payment information to your account, our standard Fedwire format (we require the same data as the CCD+) information should be entered by your bank as part of the Fedwire transaction. Your bank should provide you with a paper copy of the transmission for your records. Again please note, this option is only offered as an emergency backup for an ACH credit; it is not a routine EFT payment option. If you use this emergency backup option, you must contact the Department at ▇▇▇-▇▇▇-▇▇▇▇, ext. 3, to notify us of the situation. Because it is within the Department's mission to collect contributions due as efficiently as possible, IDES feels it must take a pro-active step to understand the electronic payment environment, to understand our business partner's capabilities and concerns, and to advise interested and affected parties on EFT tax payment processes. The Automated Clearing House (ACH) payment network has become the primary means of collecting EFT tax payments. It is the Department's intent to provide the voluntary EFT program participants the same level of confidence they receive when complying with the existing statutory requirements and Administrative Rules and Regulations. To that end, the Department has drafted this Memorandum of Understanding to provide a means of complying with statutory intent even though the process may not be specifically identified in the existing statutes and Administrative Rules and Regulations. The Memorandum of Understanding addresses the following EFT issues and EFT program procedures: