EFT Information

Electronic Funds Transfer

In recent years, the Iowa legislature passed a new law that makes payroll deduction for employee

organization dues prohibited. The law went into effect immediately.

The ISEA has established a payroll deduction system that is a quick and easy method to pay

local, state and national association dues, special funds and PAC contributions. This system is

called Electronic Funds Transfer (EFT).

The information required to set up EFT is the same information that is printed on the bottom

of your personal check.

Electronic Data Interchange is the most prevalent method that financial institutions

use to transfer funds. In the U.S., an estimated $500 billion is transferred among

financial institutions daily. EFT is used to pay mortgages, utility bills, car payments

or any other monthly bill that you would like set up between you and your bank or

company.

The ISEA, working with NEA, has partnered with Bank of America (BofA) to be the

facilitator of the Automated Clearing House (ACH). ACH is an electronic network for

financial transactions in the United States. ACH processes large volumes of credit and

debit transactions in batches. Both the government and the commercial sectors use

ACH payments. The Federal Reserve Banks, through the FedACH system, are

collectively the nation's largest ACH operator.

All data is strongly encrypted in our system and is not sent in a way that is visible to

any entity during the process. All deductions must have documentation that are

authorized, and any deductions that appear suspicious to a member can and should be

disputed with the bank. Lack of authorization will trigger a refund to the account

holder without fail.

Documented cases of fraud or abuse have been rare. Your bank account will contain

the history of all EFT transactions made including the amount deducted, thus you

can check it anytime which allows immediate reporting to the financial institution.

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