ACH Operations Flashcards
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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.
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
What is the amount of time an ODFI has to update registration information that was previously provided, including termination, about a TPS?
Within 45 days of the change
What is the amount of time that an ODFI must maintain an Originator’s or TPS’s Administrative Return Rate below the established level, if it has been exceeded?
180 days
What is the amount of time that an ODFI must maintain an Originator’s or TPS’s Overall Return Rate below the established level, if it has been exceeded?
180 days
What is the amount of time that an ODFI has to reduce an Originator’s or TPS’s Administrative Return Rate below the maximum level?
30 days from the receipt of the written request from Nacha
What is the amount of time that an ODFI has to reduce an Originator’s or TPS’s Overall Return Rate below the maximum level?
30 days from the receipt of the written request from Nacha
An ODFI must provide Nacha with information about Originators that exceed the Unauthorized Entry Return Rate Threshold within how many days?
10 Banking Days from the receipt of the written request from Nacha
What is the amount of time that an ODFI has to reduce an Originator’s or TPS’s Unauthorized Entry Return Rate below the maximum threshold?
30 days from the receipt of the written request from Nacha
What is the amount of time that an ODFI must maintain an Originator’s or TPS’s Unauthorized Return Rate below the established level, if it has been exceeded?
180 days
How long does a Participating DFI have submit a Report of Possible Rules Violation to Nacha from the date of the occurrence?
90 calendar days
An ACH Operator or a Participating DFI that acts as an entry point to or exit point from the United States for an ACH Entry.
Gateway
Which participant is responsible for obtaining an authorization from the Receiver?
Originator
What is the name of a TPSP that receives Entries from an ACH Operator for processing?
Receiving Point
What is the name of a TPSP that sends Entries to an ACH Operator for processing?
Sending Point
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
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
When is an RDFI required to provide funds availability for non-Same 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
When is an RDFI required to provide funds availability for non-Same Day credits made available by the ACH Operator after 5:00 p.m. (RDFI’s local time) on the Banking Day prior to the Settlement Date?
No later than the end of the Settlement Date of the Entry
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)
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)
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
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
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.
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
An RDFI may require written confirmation of a verbal stop payment order within how many days of the verbal stop payment order?
14 days
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
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
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
How long does an RDFI have to respond to an ODFI’s written request for a copy of a WSUD?
10 Banking Days
What participant(s) may initiate a Reversing Entry?
Originator
ODFI
What participant(s) may initiate a Reversing File?
Originator
ODFI
ACH Operator
What is a valid reason for initiating Reversing Entry?
In response to Erroneous Entry
What is the time frame for sending a Reversing Entry?
Within 5 Banking Days following the Settlement Date of the Erroneous Entry
What are the circumstances in which Reversals are prohibited?
All instances where there is no Erroneous Entry
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 rentetion 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
An ODFI must respond within how many days to an RDFI’s written request for proof of authorization?
10 Banking Days
What is the Originator’s retention time for proof of authorization for an ARC or BOC Entry?
2 years
An ODFI must provide an RDFI a copy of the face of the Eligible Source Document relating to an ARC or BOC Entry within how many days?
10 Banking Days
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 ODFI must provide an RDFI a copy of the item related to an RCK Entry within how many days?
10 Banking 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?
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 RDFI’s receipt of notification from the Receiver
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?
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 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?
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 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?
- Duplicate
- Unintended Receiver
- Wrong amount
- Wrong date
- Credit PPD that satisfies each criteria:
a. Related to Receiver’s employment
b. Value paid by Check to Receiver
c. Credit PPD Transmitted prior to delivery of
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.
