ACH Products

Question 1

SEC Code - Primarily result of Consumer initiating a bill payment through third-party service (online bill payment) or online banking platform.

Answer 1

Customer Initiated Entry (CIE)
- Credit Entry

Question 2

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.

Answer 2

Point of Sale Entry (POS)
(ACH debit card)
- Almost always Debits

Question 3

SEC Code - Originated in a shared system where an agreement, in addition to the Nacha Operating Rules, exist between ODFI and RDFI. PIN required.

Answer 3

Shared Network Entry (SHR)

Question 4

SEC Code - Primarily used for ATM cash deposit or withdrawal. PIN required.

Answer 4

Machine Transfer Entry (ATM)

Question 5

What is ANSI ASC X9.8?

Answer 5

PIN Standard

Question 6

SEC Code - Credit or Debit pursuant to standing, recurring or single authorization.

Answer 6

Prearranged Payment and Deposit Entry (PPD)

Question 7

Is a written authorization required for PPD credit entries?

Answer 7

No

Question 8

SEC Code -E-Check transaction - Consumer account only - Used when a check is returned for NSF or Uncollected Funds.

Answer 8

Re-presented Check Entry (RCK)

Question 9

Can an RCK code be returned to a non-consumer account?

Answer 9

NO!

Question 10

What is the check limit for RCK returns?

Answer 10

Less than $2,500

Question 11

RCK checks can only be accepted when they are dated less than ___ days from the RCK entry.

Answer 11

180 Days

Question 12

What is the return timeframe for RCK return?

Answer 12

by the opening of business of 2nd banking day.

Question 13

How many presentments do RCK entries have?

Answer 13

Three!

Question 14

What does the second presentment of an RCK - Company description must say?

Answer 14

RETRY PYMT

Question 15

Originator must retain a copy of the front and back of an RCK check for how long?

Answer 15

Seven years from Settlement date

Question 16

Originator must provide copy of retained check within how many days upon request?

Answer 16

Within 10 banking days of receipt of request.

Question 17

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.

Answer 17

Telephone-Initiated Entry (TEL)
Debit Transactions

Question 18

ODFI warrants that the Originators have established and implemented commercially reasonable system to…

Answer 18

• Verify Receiver’s identity
• Verify validity of routing number

Question 19

Oral Authorization and record retention requirements for Single TEL entry payments.

Answer 19

Audio or Written notice to receiver
Retain copy of audio or written

Question 20

Oral Authorization and record retention requirements for Recurring TEL entry payments.

Answer 20

Audio & copy of written
Retain copy of audio & Evidence of copy

Question 21

Oral Authorization and record retention requirements for Standing Auth. TEL entry payments.

Answer 21

Audio or Written notice to receiver
Retain copy of audio or written & proof of receivers affirmation.

Question 22

SEC Code - Internet initiated entry/Mobile entry

Answer 22

WEB

Question 23

WEB annual audit must include:

Answer 23

• Physical security
• Personal and Access control
• Network Security

Question 24

Formatting for WEB credits in the company entry description field must have…

Answer 24

Value that lets receiver know the entry is a P2P transaction
- e.g, P2P Trnsfr

Question 25

Formatting for WEB credits in the Company Name field must have…

Answer 25

Name of provider (name of FI if they are the service provider)
- e.g, First State Bank

Question 26

Formatting for WEB credit in the Individual Identification Number field must include…

Answer 26

Name of consumer originator of P2P

Question 27

Formatting for WEB credit in the Individual Name field must include…

Answer 27

Name of Consumer Receiver

Question 28

Are authorizations to WEB credit entries to a consumer account required to be in writing? (P2P credit entries)

Answer 28

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.

Question 29

SEC Code - Corporate Credit or Debit Entry. Up to 1 addenda record.

Answer 29

CCD

Question 30

SEC Code - Corporate Trade Exchange Entry. Up to 9,999 Addenda Records.

Answer 30

CTX

Question 31

SEC code - may be zero-dollar entry. Originator must obtain the non consumer receivers agreement to be bound by the Nacha Operating Rules.

Answer 31

Both CCD and CTX

Question 32

What are the Check Conversion SEC codes?

Answer 32

ARC, BOC, & POP.

Question 33

What is the additional language needed for BOC?

Answer 33

“For inquiries, please call [Retailer Phone Number]”

Question 34

What is the additional authorization requirement for POP only?

Answer 34

Written Authorization (signed receipt)

Question 35

What is the dollar amount requirements for eligible source documents?

Answer 35

Must be $25,000 or less

Question 36

What is the originator’s responsibilities for ARC, BOC, & POP record retention?

Answer 36

Retain a reproducible and legible copy of the front of the eligible source document for 2 years.

Question 37

What are the POP receipt reuirements?

Answer 37

• Originators name
• Company phone number.
• Date of transaction
• Amount
• Check serial number
• Merchant number
• Terminal City and State

Question 38

How long does the ACH Operator have to retain it’s records?

Answer 38

1 Year

Question 39

ODFI must provide a copy of eligible source document to the RDFI upon request within?

Answer 39

10 Banking days
Must clearly mark “COPY” on its face.

Question 40

How many addenda records are mandatory for IAT?

Answer 40

7

Question 41

How many addenda records are optional for IAT?

Answer 41

5
only 2 for remittance info.