Cash Concentration And Disbursement (CCD)

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS 'Cash Concentration And Disbursement (CCD)'

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.

RELATED TERMS
  1. Cash Disbursement Journal

    A record kept by accountants to record all financial expenditures ...
  2. Cash Liquidation Distribution

    The amount of capital that is returned to the investor or business ...
  3. Cash Accumulation Method

    A mathematical method of comparing the costs of different cash ...
  4. Clearing Corporation

    An organization associated with an exchange to handle the confirmation, ...
  5. Automated Clearing House - ACH

    An electronic funds-transfer system run by the National Automated ...
  6. Transfer Payment

    1. In the United States, a payment made to individuals by the ...
Related Articles
  1. Credit & Loans

    The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  2. Fundamental Analysis

    Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  3. Forex Education

    Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  4. Personal Finance

    What Are Central Banks?

    They print money, they control inflation, and much, much more. All you need to know about central banks is here.
  5. Options & Futures

    Getting To Know The Money Market

    If you need liquidity and safety on a sum of money, don't forgo potential interest by keeping the funds as cash.
  6. Markets

    What Is A Cash Flow Statement?

    Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports.
  7. Fundamental Analysis

    Taking Stock Of Discounted Cash Flow

    Learn how and why investors are using cash flow-based analysis to make judgments about company performance.
  8. Personal Finance

    Cut Your Bank Fees

    Find out how to get the bank to pay you for using their services, not the other way around.
  9. Entrepreneurship

    Which is The Best Bank for Your Buck, BAC or MS?

    One things stands out between these financial services giants when it comes to investing in them.
  10. Economics

    A Ban On SWIFT Could Hit Russia Where It Hurts Most

    A SWIFT ban on Russia could have a crippling effect on its debt-servicing ability and overall economy, and just might force a change in its policy.

You May Also Like

Hot Definitions
  1. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  2. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  3. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  4. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  5. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  6. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
Trading Center