Our Controlled Disbursement service helps you automate disbursement and fund only the amount needed for that day's disbursements so that your company can manage its payments more effectively.
The Federal Reserve Bank provides First Tennessee with early notification of check and ACH transactions drawn on the Controlled Disbursement accounts. This early notification of disbursement totals and detail is available online.
How our process works
- You send out your issued check to your vendor, or you authorize the vendor to draft your disbursement account via ACH.
- The check or ACH is presented through the Federal Reserve System.
- The Federal Reserve Bank reports all ACH and check clearing to First Tennessee.
- First Tennessee reports this information to you the same morning, prior to posting the items.
- A funding transaction is automatically generated to draw down only those funds required to cover your disbursements for the day.
- Increased efficiency – Forecasting of daily check clearings is eliminated. Funding from your primary account to your disbursement account is totally automated for complete accuracy.
- Lowered costs – By adding the ability to reduce interest expense for borrowing customers, Controlled Disbursement lowers your costs.
- Increased return on investment – Controlled Disbursement allows you to invest excess balances each day and meet the investment market early in the day.