ACH Products Flashcards
SEC Code - Primarily result of Consumer initiating a bill payment through third-party service (online bill payment) or online banking platform.
Customer Initiated Entry (CIE)
- Credit Entry
SEC Code - Most commonly known as a Target Red Card. Debit Entry is initiated at an electronic terminal to a consumer account to pay an obligation with a PIN code.
Point of Sale Entry (POS)
(ACH debit card)
- Almost always Debits
SEC Code - Originated in a shared system where an agreement, in addition to the Nacha Operating Rules, exist between ODFI and RDFI. PIN required.
Shared Network Entry (SHR)
SEC Code - Primarily used for ATM cash deposit or withdrawal. PIN required.
Machine Transfer Entry (ATM)
What is ANSI ASC X9.8?
PIN Standard
SEC Code - Credit or Debit pursuant to standing, recurring or single authorization.
Prearranged Payment and Deposit Entry (PPD)
Is a written authorization required for PPD credit entries?
No
SEC Code -E-Check transaction - Consumer account only - Used when a check is returned for NSF or Uncollected Funds.
Re-presented Check Entry (RCK)
Can an RCK code be returned to a non-consumer account?
NO!
What is the check limit for RCK returns?
Less than $2,500
RCK checks can only be accepted when they are dated less than ___ days from the RCK entry.
180 Days
What is the return timeframe for RCK return?
by the opening of business of 2nd banking day.
How many presentments do RCK entries have?
Three!
What does the second presentment of an RCK - Company description must say?
RETRY PYMT
Originator must retain a copy of the front and back of an RCK check for how long?
Seven years from Settlement date
Originator must provide copy of retained check within how many days upon request?
Within 10 banking days of receipt of request.
SEC Code - Pursuant to an oral authorization via telephone and must have an existing relationship between originator and receiver or receiver must initiate call if there is no existing relationship.
Telephone-Initiated Entry (TEL)
Debit Transactions
ODFI warrants that the Originators have established and implemented commercially reasonable system to…
- Verify Receiver’s identity
- Verify validity of routing number
Oral Authorization and record retention requirements for Single TEL entry payments.
Audio or Written notice to receiver
Retain copy of audio or written
Oral Authorization and record retention requirements for Recurring TEL entry payments.
Audio & copy of written
Retain copy of audio & Evidence of copy
Oral Authorization and record retention requirements for Standing Auth. TEL entry payments.
Audio or Written notice to receiver
Retain copy of audio or written & proof of receivers affirmation.
SEC Code - Internet initiated entry/Mobile entry
WEB
WEB annual audit must include:
- Physical security
- Personal and Access control
- Network Security
Formatting for WEB credits in the company entry description field must have…
Value that lets receiver know the entry is a P2P transaction
- e.g, P2P Trnsfr
Formatting for WEB credits in the Company Name field must have…
Name of provider (name of FI if they are the service provider)
- e.g, First State Bank
Formatting for WEB credit in the Individual Identification Number field must include…
Name of consumer originator of P2P
Formatting for WEB credit in the Individual Name field must include…
Name of Consumer Receiver
Are authorizations to WEB credit entries to a consumer account required to be in writing? (P2P credit entries)
No! If both Originator and Receiver are natural persons, no authorization by the receiver is required and no warranty with respect to any such authorization is made by the ODFI.
SEC Code - Corporate Credit or Debit Entry. Up to 1 addenda record.
CCD
SEC Code - Corporate Trade Exchange Entry. Up to 9,999 Addenda Records.
CTX
SEC code - may be zero-dollar entry. Originator must obtain the non consumer receivers agreement to be bound by the Nacha Operating Rules.
Both CCD and CTX
What are the Check Conversion SEC codes?
ARC, BOC, & POP.
What is the additional language needed for BOC?
“For inquiries, please call [Retailer Phone Number]”
What is the additional authorization requirement for POP only?
Written Authorization (signed receipt)
What is the dollar amount requirements for eligible source documents?
Must be $25,000 or less
What is the originator’s responsibilities for ARC, BOC, & POP record retention?
Retain a reproducible and legible copy of the front of the eligible source document for 2 years.
What are the POP receipt reuirements?
- Originators name
- Company phone number.
- Date of transaction
- Amount
- Check serial number
- Merchant number
- Terminal City and State
How long does the ACH Operator have to retain it’s records?
1 Year
ODFI must provide a copy of eligible source document to the RDFI upon request within?
10 Banking days
Must clearly mark “COPY” on its face.
How many addenda records are mandatory for IAT?
7
How many addenda records are optional for IAT?
5
only 2 for remittance info.
