Controlled Disbursement

Our Controlled Disbursement service helps you optimize your cash flow and improve controls by only transferring the amount needed to fund the daily disbursements in the controlled disbursement account.

The Federal Reserve Bank provides First Horizon Bank with early notification of check and ACH transactions drawn on the Controlled Disbursement accounts. This early notification of disbursement totals and detail is available online.

How our process works

1. Send your issued check (with unique First Horizon Controlled Disbursement routing number) to your vendor or authorize the vendor to draft your disbursement account via ACH.
2. The check or ACH is presented through the Federal Reserve System.
3. Based on the unique routing number, the Federal Reserve Bank provides First Horizon early presentment reports of all ACH and check clearing that day.
4. First Horizon Bank reports this information to you the same morning, prior to posting the items.
5. An intra-day funding transaction is automatically generated to draw down only those funds required to cover your disbursements for the day.

Product Benefits

• Increased efficiency – forecasting of daily check clearings is eliminated. Funding from your primary account to your disbursement account is totally automated for complete accuracy.
• Lowered costs – by adding the ability to reduce interest expense for borrowing customers, Controlled Disbursement lowers your costs.
• Increased return on investment – Controlled Disbursement allows you to invest excess balances each day and meet the investment market early in the day.