ACH/Checks/Stop Payments Flashcards
What is an ACH (Automated Clearing House)?
A network that coordinates electronic payments and automated money transfers
What is ODFI?
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)
What is RDFI?
Receiving Depository Financial Institution
-intended recipient in the transaction
Can ACH transactions be debit or credit?
EITHER
What is the OCFCU routing number and why is it important?
021382655
It is the identifying number of a financial institution for clearing funds for e-transfers or processing checks in the United States.
What are transaction times for ACH deposits/withdrawals?
5am- exceptions repost after noon same day
Exceptions do not get worked until next business day:
12:30pm
3:30pm
5:30pm
What is the exception list?
A list that has any item that couldn’t be automatically posted to a member’s account
Reasons for a transaction to be on the exception list…
- Insufficient funds at the time of posting
- Invalid account number
- Closed account
- Share ID
- IAT transaction (international transaction that has to be OFAC’d prior to posting)
- Red warning code (account is blocked by recovery so it doesn’t get overdrawn any further)
What is a check/draft?
A written, dated, and signed instrument that directs a financial institution to pay a specific sum of money to the bearer.
Types of checks
-personal
-certified, cashier’s, or official
-business
-payroll
-gov. issued
Common ACH transactions…
-direct deposit
-consumer bills
-business to business
-e checks
-e commerce
-tax payments
What are the check security features?
-watermarks
-void pantographs
-security screen
-micro printing
-chemical sensitive paper
-laid lines
-padlock icon
What is the MICR line?
String of characters that represents the institution’s routing #, acc #, and check #
-helps detect and prevent fraud
STUDY CHECK ANATOMY
Business vs. Personal checks
What is an SAR?
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
What is a CTR?
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
What is OFAC?
Office of Foreign Asset Control
-administers and enforces economic and trade sanctions
-used to prevent terrorists/drug traffickers/money launderers from getting accounts
Checks payable to…
Business = business account
DBA = personal account or sole proprietorship depending on social
What is our mission statement?
We provide families a brighter financial future by fulfilling dreams and earning trust.
Reg CC Chart
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
