MAIL ADVERSE ACTION NOTICES DIRECTLY 



Obtain and verify usual mailing address of beneficiary 



Incorporate address on MBR 



Process changes to usual mailing address 



Establish a beneficiary recontact program 

 DRAW CHECKS IN FAVOR OF FINANCIAL ORGANIZATIONS 



Explain direct deposit to beneficiaries 



Obtain beneficiary authorization 



Obtain financial organization information 



Verify validity of account number and name 



Incorporate financial organization identifying information on 

 MBR (EIN) 



Develop transaction tape format for direct deposit 



Develop and maintain a financial organization address file 



Develop payment name legend 



Draw checks in favor of financial organizations 



DEVELOP AN EFT SYSTEM 



Determine direct-deposit payment master file requirements 



. Determine transaction tape format requirements 



Determine microfilming requirements 



Determine Federal Reserve interface requirements 



Determine financial organization interface requirements 



Develop method to guarantee payment 



Design and pilot test payment system 



Initiate mailing of informational materials as well as notices 

 directly to beneficiaries 



Implement system 



Figure 3.3 



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