ACH Operation Flashcards by DAndra Smith

How many days does an ODFI have to
register a TPS with Nacha?

Within 30 days of Transmitting the
first Entry on behalf of the TPS, or
within 10 days of becoming aware
that an unregistered customer of the
ODFI is actually a TPS.

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What is the amount of time that an
ODFI has to provide supplemental
registration information about a
Third-Party Sender to Nacha?

10 Banking Days from the receipt
of the written request from Nacha

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Which participant is responsible for
obtaining an authorization from the
Receiver?

Originator

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What is the name of a TPSP that
receives Entries from an ACH
Operator for processing?

Receiving Point

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What is the name of a TPSP that
sends Entries to an ACH Operator for
processing?

Sending Point

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What are the responsibilities of an
ACH Operator?

Provide clearing, delivery, and
settlement services for ACH Entries
Process and edit Files based on the
Nacha Operating Rules
Evaluate credit worthiness of, and
apply risk control measures to
Participating DFIs

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What are the responsibilities of an
RDFI in regard to receipt of Entries?

Timely receipt
Posting
Prenote validation
Return of Entries
Proper notification to ODFI regarding
NOCs
Timely handling of remittance data
Providing Entry information to consumer
Receivers

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When is an RDFI required to
provide funds availability for nonSame Day credits made available
by the ACH Operator by 5:00 p.m.
(RDFI’s local time) on the Banking
Day prior to the Settlement Date?

No later than 9:00 a.m. (RDFI’s
local time) on the Settlement
Date of the Entry

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What is the deadline for an RDFI to provide
funds availability for Same-Day credit Entries
Transmitted in the first Same Day processing
window?

By 1:30 p.m. (RDFI’s local time)

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What is the deadline for an RDFI to provide
funds availability for Same-Day credit Entries
Transmitted in the second Same Day
processing window?

By 5:00 p.m. (RDFI’s local time)

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What is the deadline for an RDFI to make
funds available in the Receiver’s account for
same-day credit Entries Transmitted in the
third Same Day processing window?

No later than the end of the RDFI’s processing
day

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What is the effective period for a consumer
stop payment order?

The earlier of:
1. The withdrawal of the stop payment order
by the Receiver;
2. The Return of the debit Entry; or
3. Where the stop payment order applies to
more than one debit Entry relating to a specific
authorization involving a specific Originator;
the return of all such debit Entries

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How must an RDFI honor a consumer stop
payment order, either verbally or in writing,
for a Single or Subsequent Entry?

In such time and in such manner as to allow
the RDFI a reasonable opportunity to act on
the order prior to acting on the Single or
Subsequent Entry.

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How long does an RDFI have to honor a
consumer stop payment order, either verbally
or in writing, for a Recurring Entry?

At least 3 Banking Days before the scheduled
debit date

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An RDFI may require written confirmation of a
verbal stop payment order within how many
days of the verbal stop payment order?

14 days

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How long does an RDFI have to comply with a
non-consumer’s verbal stop payment order?

14 calendar days unless the order is confirmed
in writing

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What is the effective period for a non-consumer stop payment order?

The earlier of:
1. The withdrawal of the stop payment order
by the Receiver;
2. The Return of the debit Entry; or
3. Six months from the date of the stop
payment order, unless it is renewed in writing

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How long does an RDFI have to respond to an
ODFI’s written request for a copy of a WSUD?

10 Banking Days

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How long does an ODFI have to request a copy
of a WSUD?

1 year from the Settlement Date of the
Extended Return Entry to which the WSUD
relates

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What participant(s) may initiate a Reversing
Entry?

Originator
ODFI

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What participant(s) may initiate a Reversing
File?

Originator
ODFI
ACH Operator

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What is a valid reason for initiating Reversing
Entry?

In response to Erroneous Entry

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What is the time frame for sending a Reversing Entry?

Within 5 Banking Days following the
Settlement Date of the Erroneous Entry

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What are the circumstances in which Reversals are prohibited?

All instances where there is no Erroneous Entry

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What is the amount of time an ODFI or Originator has to initiate a Reclamation Entry or written demand for payment?

Within 5 Banking Days after the Originator receives notice of death of Receiver

What is the amount of time an Originator can make a written demand for payment for a commercial reclamation?

Within 15 Banking Days after it receives the returned Reclamation Entry

What is the Record retention time frame for an ACH Operator?

1 year from the date the Entry was received or Transmitted

An ODFI must respond to an RDFI’s written request for a copy of the Receiver’s authorization related to a consumer transaction within how many days?

10 Banking Days

How long must an Originator retain the original or copy of a consumer authorization after termination or revocation of the authorization?

2 years

What is the Originator’s retention time for proof of authorization for an ARC or BOC Entry?

2 years

How long does an RDFI have to request a copy of a Check for which an XCK Entry relates?

6 years after Settlement Date

An ODFI must provide an RDFI a copy of an item relating to an XCK Entry within how many days?

30 calendar days

An Originator must retain a copy of the front and back of an item related to an RCK Entry for how many days?

7 years

How long does an RDFI have to provide payment-related information from CCD, CTX, CIE, and IAT Entries, upon request?

Opening of business on the second Banking Day following the Settlement Date of the Entry

What is the time frame in which the Originator must notify the Receiver in advance of a change in the amount of a recurring debit?

10 calendar days

What is the time frame in which the Originator must notify the Receiver in advance of a change in the date of the debit?

7 calendar days

What is the time frame to return a standard Return Entry?

Transmitted to its ACH Operator by the ACH Operator’s deadline for the Return Entry to be made available to the ODFI no later than the opening of business on the second Banking Day following the Settlement Date of the original Entry.

What is the deadline to return an Extended Return Entry?

Transmitted to its ACH Operator by its deposit deadline for the Extended Return Entry to be made available to the ODFI no later than the opening of business on the Banking Day following the sixtieth calendar day following the Settlement Date of the original Entry.

What is the time frame for an RDFI to Transmit an Extended Return Entry once the Written Statement Unauthorized Debit has been received?

Within 6 Banking Days

What is the time frame for an RDFI to return a credit Entry?

What is the time frame for an RDFI to return unauthorized debits to a Non-Consumer Account that bear the CCD or CTX SEC Code?

What is the return time frame for an XCK Entry beyond two Banking Days?

Transmitted to its ACH Operator by the ACH Operator’s deposit deadline for the Return Entry to be made available to the ODFI no later than the opening of business on the Banking Day following the sixtieth calendar day following the Settlement Date of the XCK Entry.

What is the time frame when an ODFI must Transmit a dishonored Return Entry?

Transmitted within 5 Banking Days after the Settlement Date of the Return Entry

What is the time frame for an RDFI to Transmit a contested or corrected dishonored Return Entry?

Transmitted to the ACH Operator within 2 Banking Days after the Settlement Date of the dishonored Return Entry

What is the time frame for an RDFI to Transmit a NOC?

Transmitted within 2 Banking Days of the Settlement Date of the Entry to which the NOC relates

What is the time frame an ODFI must provide NOC or corrected NOC information to the Originator?

Within 2 Banking Days of the Settlement Date of the NOC or corrected NOC

What is the time frame for an ODFI to Transmit a Refused NOC?

Transmitted to its ACH Operator within 15 days of receipt of the NOC or corrected NOC

When must an RDFI respond to a Refused NOC?

Within 5 Banking Days after the Settlement Date of the refused COR Entry

What is the minimum information that an RDFI must verify in regard to a Prenotification Entry?

Account number is valid

What is the time frame ab Originator must wait to send a live Entry following the Settlement Date of a Prenote?

3 Banking Days

An Originator must make corrections provided in a NOC for a Single Entry within this time period.

The Originator is not required to make corrections per the Nacha Operating Rules, but may do so at its discretion.

When must an Originator make corrections provided in a NOC for a Recurring Entry?

6 Banking Days or prior to the next live Entry, whichever is later

What is the three-digit number that identifies the Settlement Date?

Julian date

What is the date on which exchange of funds with respect to an Entry is reflected on the books of the Federal Reserve Bank?

Settlement Date

What is the time frame an Originator must Reinitiate a Returned Entry?

Within 180 calendar days following the Settlement Date of the original Entry

What is the time frame an Originator must initiate a Return Fee Entry authorized by notice?

Within 45 calendar days following the Settlement Date of the Return Entry

When must a Gateway notify an RDFI of an inbound IAT transaction that has been blocked or rejected?

5 Banking Days

What SEC Code(s) may be used for both a Non-Monetary Entry and the provision of payment-related information to the Receiver?

CCD, CTX, CIE, and IAT

If the scheduled Settlement Date for a credit Entry is not a Banking Day for the ODFI but is a day on which the applicable office of the Federal Reserve Bank is open, when will the ACH Operator effect settlement?

The scheduled Settlement Date

According to the Nacha Operating Rules, which ACH participant must calculate the settlement amounts for each Banking Day for all Entries processed under these Rules?

ACH Operator

What is the term used for the process of holding either credit or debit Entries until such a processing day when the ACH Operator will accept them?

Warehousing

What is the process used by the Bureau of the Fiscal Service to research non-receipt of SSA, SSI, or VA benefit payments?

Trace Request

What is the type of Entry an Originator initiates to both validate the account number of a Receiver and verify the Receiver obtains the payment-related information?

Zero-Dollar Entry

Exception item an ODFI would receive if mandatory information in a record is either invalid or missing.

Reject Entries

What is an authorization that requires specific action be taken by the Receiver to initiate a Subsequent Entry called?

Standing Authorization

What is the Company Entry Description value for all Reinitiated Entries?

RETRY PYMT

The ODFI of a Person-to-Person credit WEB Entry must input the name of the consumer Originator in which field?

Individual Identification Number

An ODFI may use this tool to become aware of an Originator’s or TPS’s past relationships with other ODFIs.

Terminated Originator Database (TOD)

What is the time frame in which unauthorized Entries to a Consumer Account are covered under the breach of warranty claim?

2 years from the Settlement Date of the debit plus Entries that occurred within 95 calendar days of the first unauthorized debit Entry

What is the time frame in which unauthorized Entries to a Non-Consumer Account are covered under the breach of warranty claim?

1 year from the Settlement date of the debit Entry

What is the Return time frame for an Entry bearing a consumer SEC Code that has posted to a Non-Consumer Account?

What Return reason code may an RDFI use to Return a debit WEB Entry that posts to a Non-Consumer Account that has an ach filter/positive positive-pay feature?

R29 - Corporate Customer Advises Not Authorized

What Return reason code may an RDFI use to Return a BOC Entry when the Check has also cleared the account?

R37 - Source Document Presented for Payment

What Return reason code may an RDFI use to Return an Entry when the account number does not correspond to the individual identified in the Entry?

R03 - No Account / Unable to Locate Account

What Return reason code may an RDFI use to Return any Entry they believe is suspicious?

R17 - File Record Edit Criteria / Entry Initiated Under Questionable Circumstances / Return of Improperly Initiated Reversal

What is an Erroneous Entry?

1. Duplicate 2. Unintended Receiver 3. Wrong amount 4. Wrong date 5. Credit PPD that satisfies each criteria: 6. a. Related to Receiver’s employment 7. b. Value paid by Check to Receiver 8. c. Credit PPD Transmitted prior to delivery of 9. Check

What is the time frame for sending a Reversing Entry or Reversing File?

Within 5 Banking days following the Settlement Date of the Erroneous Entry and within 24 hours of the discovery of the Erroneous File.

ACH Operation Flashcards

(77 cards)