Electronic Funds Transfer (EFT)
Electronic Funds Transfer (EFT) allows Medicare to transfer payment directly
to the provider’s financial institution. The Electronic
Funds Transfer (EFT) Authorization Agreement (CMS-588)
form is required
for:
- new provider enrollments;
- enrolled providers who are not already on EFT; and
- requesting a change to a provider’s enrollment information.
The CMS-588 EFT form includes step by step instructions. For additional assistance, follow these guidelines:
- Include a voided/cancelled check from the account you wish Medicare payments
to be transferred to. Deposit slips are not acceptable as the necessary routing
number is not always accurate. If not available, submit a confirmation of
the account on bank letterhead that includes the following:
- Name of the account;
- Electronic routing transit number;
- Account number and type; and
- Bank officer’s name and signature.
- The depository must be a banking institution; it cannot be a brokerage house or mutual fund.
- The legal business name of the provider or the chain home office name must match the name on the account.
- Original signature and date. Signature must be by the same authorized official that signs the enrollment application.
- Provider name, address, and bank information listed on the CMS-588 EFT form must be correct and match the voided/cancelled check or bank confirmation letter.
- Provider must have sole control of the bank account. This is required for the EFT to be approved.
As a reminder, the Centers for Medicare & Medicaid Services (CMS) Medicare
Financial Management Manual, Pub. 100-06, Chapter 5, Section
160 C. Claims Processing Timeliness (CPT) Requirement states; "Payment
settlement, i.e., the date on which funds are posted to the provider's
account, should not be earlier than 2 business days following transmission
of the electronic payment data to the originating bank." Therefore,
providers should be aware that EFT transactions may take up to 48 hours
to reach their bank. When reviewing the “Check History” (Option
FI) form the Fiscal Intermediary Standard System (FISS) Inquiry Menu, providers
may see a payment date two days earlier than the actual date the payment
reaches their financial institution. For more information about using the “Check
History” Inquiry Option, review the instructions in “ Chapter
Three: Inquiry Menu
” of the Fiscal Intermediary Standard
System (FISS) Guide.
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