Cash Concentration and Disbursement (CCD)

It sounds like a typical trip to the casino. First, you concentrate all your money. Then you fly to Las Vegas and...disperse it.

But the term "cash concentration and disbursement" actually refers to a type of electronic payment. It's a business-to-business money transfer meant especially for firms to move money around internally...like if you wanted to move money from headquarters to the Bakersfield Branch to pay for the launch of the mysterious Project X your CEO is planning.

However, CCDs can can also be used to send payments to third parties.

The CCD facilitates quick movement of large amounts of money. These transfers pass through the Automated Clearing House (ACH) system overnight.