ACH/Checks/Stop Payments

Question 1

What is an ACH (Automated Clearing House)?

Answer 1

A network that coordinates electronic payments and automated money transfers

Question 2

What is ODFI?

Answer 2

Originating Depository Financial Institution

• takes ACH transactions and batches them together to send out and regular times during the day

(They are the initiator in the transaction)

Question 3

What is RDFI?

Answer 3

Receiving Depository Financial Institution

-intended recipient in the transaction

Question 4

Can ACH transactions be debit or credit?

Answer 4

EITHER

Question 5

What is the OCFCU routing number and why is it important?

Answer 5

021382655

It is the identifying number of a financial institution for clearing funds for e-transfers or processing checks in the United States.

Question 6

What are transaction times for ACH deposits/withdrawals?

Answer 6

5am- exceptions repost after noon same day

Exceptions do not get worked until next business day:
12:30pm
3:30pm
5:30pm

Question 7

What is the exception list?

Answer 7

A list that has any item that couldn’t be automatically posted to a member’s account

Question 8

Reasons for a transaction to be on the exception list…

Answer 8

1. Insufficient funds at the time of posting
2. Invalid account number
3. Closed account
4. Share ID
5. IAT transaction (international transaction that has to be OFAC’d prior to posting)
6. Red warning code (account is blocked by recovery so it doesn’t get overdrawn any further)

Question 9

What is a check/draft?

Answer 9

A written, dated, and signed instrument that directs a financial institution to pay a specific sum of money to the bearer.

Question 10

Types of checks

Answer 10

-personal
-certified, cashier’s, or official
-business
-payroll
-gov. issued

Question 11

Common ACH transactions…

Answer 11

-direct deposit
-consumer bills
-business to business
-e checks
-e commerce
-tax payments

Question 12

What are the check security features?

Answer 12

-watermarks
-void pantographs
-security screen
-micro printing
-chemical sensitive paper
-laid lines
-padlock icon

Question 13

What is the MICR line?

Answer 13

String of characters that represents the institution’s routing #, acc #, and check #

-helps detect and prevent fraud

Question 14

STUDY CHECK ANATOMY

Question 15

Business vs. Personal checks

Question 16

What is an SAR?

Answer 16

Suspicious Activity Report

Filed in the case of:
-insider abuse
-federal criminal violation
-sus transaction
-computer intrusion

-must be filed within 30 business days if suspect can be identified
-60 business days if no suspect

Question 17

What is a CTR?

Answer 17

Currency Transaction Report

-filed when cash transaction totals more than $10,000 from one person in one day

-must be filed within 15 business days

Question 18

What is OFAC?

Answer 18

Office of Foreign Asset Control

-administers and enforces economic and trade sanctions

-used to prevent terrorists/drug traffickers/money launderers from getting accounts

Question 19

Checks payable to…

Answer 19

Business = business account

DBA = personal account or sole proprietorship depending on social

Question 20

What is our mission statement?

Answer 20

We provide families a brighter financial future by fulfilling dreams and earning trust.

Question 21

Reg CC Chart

Answer 21

Checks up to $5,525-
$225 available next business day
Rest available 2nd business day

Cash- same day
Cashier’s/official check- same day
Money order- same day
Government checks- same day