ACH, Wire, and Remittance Transfers

Question 1

This party is responsible for moving money and payment related data, electronically.

Answer 1

The Automated Clearing House (ACH)

Question 2

This moves money directly from one financial institution to another.

Answer 2

Wire Transfers

Question 3

They move money directly from one financial institution to a financial institution in another country.

Answer 3

Remittance Transfers

Question 4

This is a batch processing system. Institutions accumulate transactions during the day. Later, all of the accumulated transactions are processed in a batch.

Answer 4

The ACH Network

Question 5

Because this type of transfer is direct, it can take much less time.

Answer 5

Wire Transfer

Question 6

Since financial institutions are directly involved in the effort being the transfer, there may be fees charged by both the sending and receiving institution.

Answer 6

Wire Transfers.

Question 7

This push funds into an account. An example would be direct deposit of a paycheck into your checking or savings account.

Answer 7

ACH Credit

Question 8

These are considered very secure from outside interference.

Answer 8

Wire Transfers

Question 9

This pulls funds from an account. An example would be automatic bill payments that deduct money from your checking or savings account every month.

Answer 9

ACH Debits

Question 10

Regardless of the type of transfer, all payment orders should be checked against the Office of Foreign Assets Control Specially Designated Nationals List for:

Answer 10

• Any new originator ( customer or non-customer)
• New Beneficiary
• New intermediary institution

Question 11

What type of transaction does this example include:
Recurring (automatic) payments to a creditor, like the gas company or your mobile phone provider.

Answer 11

ACH Transaction

Question 12

Sometimes, an __________ will work with a third-party sender, where the TPS will initiate a transaction on behalf of an __________.

Answer 12

Originator

Question 13

This party must validate entries coming into the ACH system.

Answer 13

ODFI

Question 14

This party verifies the originator has the funds to process the transfer.

Answer 14

ODFI

Question 15

This party honors any stop payment order made by the originator.

Answer 15

RDFI

Question 16

A major part of handling wire transfers is documenting the details of transfers of $____ and above.

Answer 16

$3,000

Question 17

This type of institution is neither the originator’s financial institution for the beneficiary’s financial institution. It is a financial institution through which the wire or transfer passes.

Answer 17

Intermediary Institution

Question 18

Under the Remittance Rule, you must disclose four items:

Answer 18

• The exchange Rate
• Fees related to the remittance
• The amount of money that will be delivered abroad
• The date the money will be available

Question 19

For preauthorized remittance transactions, originators may cancel the transfer as long as the request to cancel is received by?

Answer 19

At least 3 business days before the scheduled date of the transfer.

Question 20

Which organization has risk management tools like the Terminated Originator Database?

Answer 20

NACHA