ACH Operating Rules

Question 1

ACH Network Administration Fee
Per-Entry Fee

Answer 1

$.000185

Question 2

ACH Network Administration Fee
Annual Fee

Answer 2

$344.00

Question 3

Is intended to minimize incidences of fraud schemes

Answer 3

Commercially Reasonable Fraud Detection

Question 4

Establishes a baseline of normal activity

Answer 4

Monitoring forward and return volumes

Question 5

Must hold records for a period of six years - providing Copies.

Answer 5

Participating DFI’s

Question 6

Establishes, implements and periodically reviews exposure limits.

Answer 6

ODFI

Question 7

Must have clear and readily understandable terms and readily identifiable as an authorization.

Answer 7

Originator

Question 8

Debit Entries language must include:

Answer 8

• Single entry, Recurring or one or more subsequent Entries
• Amount or how amount is determined
• Timing, including start date, number and frequency
• Receiver’s name or identity
• Account to be debited
• Date of authorization
• Revocation language

Question 9

May be met by the terms of the authorization and receiver’s affirmative action to initiate subsequent entries.

Answer 9

Standing Authorization

Question 10

Standing authorization for debit entries to consumer accounts

Answer 10

1. Specify action for subsequent entry
2. Standing authorization that is oral comply with requirements of Oral Auth.
3. Secure transmission of data via UEN
4. Ensure proper use of SEC code based on Standing Auth. or Sub. Entry.

Question 11

Amount of time a copy of Auth. must be sent to RDFI if written request is received

Answer 11

10 Banking Days

Question 12

Amount of time the original or copy of Auth. must be kept from termination or revocation of authorization.

Answer 12

2 years

Question 13

Amount of time a notice of change in amount to consumer accounts must be made.

Answer 13

10 Calendar Days

Question 14

Amount of time a notice of change in scheduled debiting date must be made.

Answer 14

7 Calendar Days

Question 15

General Warranties and Liabilities of ODFIs

Answer 15

1. Entry is authorize by originator and receiver
2. Entry complies with rules (includes proper SEC Code)
3. Entry not transmitted on behalf of a suspended originator or
   Third-party Sender.
4. Entry contains required information.
5. Credit Entry is timely
6. Debit entry satisfies an obligation, corrects an error or reclaims an
   amount received after death or legal incapacity.
7. Secure transmission of banking information.

Question 16

Does ODFI Warranties apply to goods or services?

Answer 16

No

Question 17

General Indemnity by ODFI

Answer 17

• for breach of warranty
• for failure to comply with regulation E

Question 18

How often do Debit WEB entries need to be audited?

Answer 18

Annually

Question 19

Must use Fraud Detection Systems, Verification of receiver’s identity, Verification of routing numbers.

Answer 19

WEB Entries

Question 20

General rights and responsibilities of RDFIs

Answer 20

1. Must accept entries
2. May rely solely on account numbers for posting entries
3. May rely on Standard Entry Class Codes
4. May request copy of receivers authorization of entry from ODFI

Question 21

Number of days RDFI must return funds back to ODFI

Answer 21

By opening of business on second banking day following settlement date of original entry.

Question 22

Restrictions on RDFI’s right to transmit return entries

Answer 22

May not return an entry due to the type of entry
May not return an entry based on MICR Data

Question 23

Correcting and contesting dishonored returns must be transmitted within how many days?

Answer 23

2 banking days

Question 24

Specific provisions for acknowledgment entries

Answer 24

Must be transmitted to be made available to ODFI no later than opening of business on second banking day following settlement date of CCD or CTX Entry.

Question 25

RDFI may transmit extended return entries back to ODFI within how many days?

Answer 25

60 calendar days

Question 26

General Responsibilities of ACH Operators

Answer 26

ACH Operator Must:
1. Agreement with National Association.
2. Compliance with the rules.
3. Enter agreements with participating DFI’s
4. Conduct Risk Management.
5. Comply with Federal reserve policy on settlement
6. Comply with national performance standards
7. Allow inter-operator Exchanges.

Question 27

Gateways must obtain Authorization from ODFI or Gateway’s customer…

Answer 27

1. To transmit outbound IAT to Foreign Gateway
2. For settlement of entries with foreign gateway.
3. Arrange for further transmission to “foreign RDFI” and settlement to or from
   “foreign receiver’s” account.

Question 28

Must notify intended RDFI of unlawful inbound payment transactions

Answer 28

Gateway

Question 29

May not process Debit Inbound IAT Entries

Answer 29

ACH Operator

Question 30

Standing oral debit authorization

Answer 30

must be recorded or provide receiver with written notice prior to the settlement of the first subsequent entry.

Question 31

Recurring oral debit authorization

Answer 31

must include written notification to receiver and recording

Question 32

Single oral debit entry

Answer 32

must be recorded or provided receiver with written notice.

Question 33

Within how many days after receiving notice of the receiver’s death must the originator initiate a reclamation or written demand for payment?

Answer 33

30 days

Question 34

When an ODFI utilizes a Third-Party Service Provider in the origination process, which party warrants the entries are authorized?

Answer 34

The Third-Party Service provider