CASH CONCENTRATION AND DISBURSEMENT (CCD)

A type of electronic payment used to transfer funds between remote locations and so-called concentration (i.e., collection) accounts. CCD is also used between businesses. Cash Concentration and Disbursement accounts are tools used for cash management that seperate funds collection and disbursement. Transfers are cleared overnight through the Automated Clearing House (ACH) system.

Cash concentration and disbursement represent cash management techniques that improve the flow of cash, reduce excess balances and increase interest earned. Cash concentration collects all available funds in a single account, while disbursement is controlled so that cash can be fully invested during the day and helps assess funding requirements for checks brought for payment.