Cash Concentration and Disbursement (CCD)

Cash concentration and disbursement (CCD) is a type of electronic payment used to transfer funds among remote locations and so-called concentration (i.e. collection) accounts. The National Automated Clearing House Association (NACHA) developed cash concentration and disbursement to enable corporations to make electronic transfers internally, as well as invoice payments to external suppliers. CCD supports rapid, secure transactions, which the Automated Clearing House (ACH) system clears overnight. CCD entries are usually high-dollar, low-volume, and time-sensitive.

Cash concentration and disbursement accounts are tools, which many use for cash management. As the name suggests CCD separates the aspects of funds collection and funds disbursement. Cash concentration and disbursement are techniques, which can help improve the flow of cash, reduce excess balances, and increase interest earned. Cash concentration collects all available funds into a single account, while disbursement is controlled so that cash can be fully invested during the day. This can help assess any further funding requirements.

Cash management is the corporate process of collecting and managing cash, as well as using it for (short-term) investing. It is a key component of ensuring a company's financial stability and solvency and can be an essential skill for small business managers, in particular, as they typically have less access to affordable credit. In addition, significant upfront costs and often lagging receivables can make it difficult to meet unexpected expenses and handle regularly occurring events such as payroll distribution.

CCD entries are one form of managing time-sensitive cash transactions. Forms of receivables management (reducing payment float) can include clarifying billing terms with customers, using an automated billing service to contact customers immediately, using electronic payment processing via a bank for collection purposes, and staying on top of collections with an aging receivables report. Payables management solutions often revolve around electronic payment processing, direct payroll deposit, and controlled disbursement for automate the these functions.

With online banking new opportunities for smaller businesses to access large-scale cash management technologies are more common.

Expanding upon CCD entries, CCD+ transactions often come with an addenda record. This addenda transmits information, which usually comprise invoices. CCD+ is designed to meet Electronic Data Interchange (EDI) systems standards. Many employ EDI systems to communicate business and financial transactions among parties. EDI systems usually entail direct transactions between computers, databases and order systems.