17 NCAC 01C .0503. EFT DEFINITIONS

The terms and phases used in this Section shall have the meanings prescribed in this Rule, unless a different meaning is indicated by the context in which the term or phase is used.

(1)           "ACH" or "Automated Clearing House" means a central distribution and settlement point for the electronic clearing of debits and credits between financial institutions rather than the physical movement of paper items.

(2)           "ACH Credit" means the electronic transfer of funds initiated by a taxpayer, cleared through the ACH for credit to the State Treasurer.

(3)           "ACH Debit" means the electronic transfer of funds from the taxpayer's account which is initiated to the Data Collection Center upon the taxpayer's instruction and cleared through the ACH for deposit to the State Treasurer.

(4)           "ACH Trace Number" means a unique number assigned to an electronic payment transaction by the financial institution originating the transaction.

(5)           "Addenda Record" means the tax information and electronic format required by the Department in an ACH Credit transfer.

(6)           "Call‑in Day" means the day on which a taxpayer communicates information to the Data Collection Center to initiate an ACH Debit transaction.

(7)           "CCD+" or "Cash Concentration or Disbursement Plus Addenda" means a standard ACH transaction format which includes one 80 character addenda record.

(8)           "CB$" or "Core Banking System" means the Department of State Treasurer's agency online banking system for state agencies and institutions within the University of North Carolina system for transferring funds electronically.

(9)           "Data Collection Center" or "DCC" means the third party vendor, who, under contract with the Department's financial institution, collects and processes EFT payment information from taxpayers and initiates an ACH Debit transaction.

(10)         "Department" means the North Carolina Department of Revenue.

(11)         "Due Date" means the date on which a payment is required to be made by a taxpayer under a General Statute of the State of North Carolina.

(12)         "Electronic Funds Transfer" or "EFT" means any transfer of funds initiated through an electronic terminal, telephonic instrument, computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account using the methods specified in the rules in this Section.

(13)         "Fiscal Year" means July 1 through June 30.

(14)         "Holiday" means a State Holiday or a Holiday recognized by the Federal Reserve District.

(15)         "NACHA" means the National Automated Clearing House Association which is the regulatory body for the ACH Network.

(16)         "OBI Fields" or "Originator to Beneficiary Information" means a field in a wire transfer that contains information required by the Department from the taxpayer.

(17)         "Payment Information" means the data which the Department requires of a taxpayer making an EFT payment and which must be communicated to the Data Collection Center or be provided in the TXP Banking Convention addenda record of an ACH Credit Transaction.

(18)         "Payor" means the taxpayer.

(19)         "Payor Identification Number" means a confidential code assigned to each taxpayer which uniquely identifies the payor and allows the payor to communicate payment information to the Data Collection Center.

(20)         "Selection Period" means any 12 consecutive month period on which a determination is made regarding a taxpayer's EFT status.

(21)         "Settle" means a deposit of good funds into the State's bank account.

(22)         "Settlement Day or Date" means the day an EFT transaction settles.

(23)         "Taxpayer" means any taxpayer required to remit an amount by electronic funds transfer.  For the purpose of the rules in this Section, "taxpayer" includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit and includes any political subdivision, municipality, bureau, state agency, and institution within the University of North Carolina system.  The term "taxpayer" does not include,  local school boards and community colleges.

(24)         "Tax Type" means a tax which is subject to EFT, each of which shall be considered a separate category of payment.

(25)         "Trace Number" means the verification number provided by the Data Collection Center upon receipt of all payment information from the payor which uniquely identifies the completed communication of payment information.

(26)         "Treasurer" or "State Treasurer" means the Treasurer of the State of North Carolina.

(27)         "TXP Format" means the standard CCD+ Addenda record format to be used in ACH Credit transactions approved by Banker's EDI Council of the National Automated Clearing House Association and the Federation of Tax Administrators.  This format is required by the Department when a taxpayer is afforded the ACH Credit payment method.

(28)         "Wire Transfer" means an instantaneous electronic funds transfer generated by the taxpayer to the State Treasurer. (i.e. Fedwire or Bankwire)

 

History Note:        Authority G.S. 105‑241; 105‑262;

Eff. October 1, 1993;

Amended Eff. June 1, 2007; November 1, 1994.