Marketing & Products

Question 1

This is the electronic deposit of funds using an ACH credit payment by a business or government entity to a consumer’s account for payroll, employee expense reimbursement, government benefits, tax and other refunds, annuities and interest payments.

Answer 1

Direct Deposit

Question 2

This is the use of funds for making a payment using an ACH credit or debit payment by an individual or entity and encompasses all types of ACH payments that are not considered Direct Deposit via ACH.

Answer 2

Direct Payment

Question 3

This code identifies a non-monetary entry initiated by an RDFI to provide an acknowledgement of receipt by the RDFI of a corporate credit payment originated using the CCD format.

Answer 3

ACH Payment Acknowledgement (ACK)

Question 4

This code identifies a Non-Monetary Entry that is used by an ACH Operator to provide accounting information regarding an entry to participating DFIs in machine readable format. This is an optional service provided by the ACH Operator and must be requested by a DFI.

Answer 4

Automated Accounting Advice (ADV)

Question 5

This code identifies a non monetary entry initiated by an RDFI to provide an acknowledgment of receipt by the RDFI of a corporate credit payment originated using the CTX format.

Answer 5

Financial EDI Acknowledgment (ATX)

Question 6

These entries are credit, debit or zero dollar transactions initiated by an Originator to transfer funds to or from an account of the organization or another organization.

Answer 6

Corporate Credit or Debit Entries (CCD)

Question 7

These entries contain only payment related information.

Answer 7

Zero dollar transaction

Question 8

These entries may include one addenda record that relays information in payment related ANSI ASC X12 data segments or Nacha endorsed banking conventions.

Answer 8

CCD Entry

Question 9

These entries are frequently used for cash concentration to transfer funds from multiple accounts into a central account to effect more efficient cash management, as well as to transfer funds and payment data to corporate trading partners.

Answer 9

CCD Entry

Question 10

This code identifies a credit entry initiated by or on behalf of the holder of a consumer account to transfer funds to the account of the receiver. These are usually transmitted to a company for payment of funds that the consumer owes to that company and are initiated by the consumer through some type of online banking product or bill payment service provider.

Answer 10

Customer Initiated Entry (CIE)

Question 11

These entries are used much the same way as CCD entries, but may include up to 9,999 addenda records, allowing considerable payment related data to be included.

Answer 11

Corporate Trade Exchange Entries (CTX)

Question 12

This code identifies entries initiated at an electronic terminal, as defined in regulation E, to transfer funds to or from a consumer account maintained with an RDFI. Such as ATM cash deposit or withdrawal.

Answer 12

Machine Transfer Entry (MTE)

Question 13

These transactions are debit entries initiated at an electronic terminal to transfer funds from a consumer account of the receiver to pay an obligation incurred in a transaction. These entries are originated in a non shared environment and are used for entries such as grocery, gasoline and other retail payments.

Answer 13

Point of Sale Entries (POS)

Question 14

Is an entry initiated by an organization based on a standing or single entry authorization from a receiver to transfer funds to or from a consumer account of the receiver.

Answer 14

Prearranged Payment and Deposit Entry (PPD)

Question 15

The code identifies a debit entry initiated at an electronic terminal, as defined in regulation E, to transfer funds from a consumer account of the receiver to pay an obligation incurred in a point of sale transaction, or to effect a point of sale terminal cash withdrawal. Also an adjusting for other credit entry related to such debit entry, transfer of funds, or obligation. These entries are initiated in a network where the ODFI and RDFI have an agreement in addition to the Nacha Operating Rules to process such entries.

Answer 15

Shared Network Transaction (SHR)

Question 16

This is the electronic transmission of business documents in a standard or structured format from one computer system to another without human intervention - from one trading partner to another trading partner.

Answer 16

Electronic Data Interchange (EDI)

Question 17

Electronic transfer of funds and payment related information. The Federal government uses this for payments it makes to businesses, which provide goods and services to Federal agencies, and other payment recipients, such as State/local governments and educational institutions. Is used on an international level.

Answer 17

Financial EDI

Question 18

Is a term used to describe the receiving financial institution’s ability to process or post the entry and report remittance information that accompanies the payment in either machine or human readable format.

Answer 18

EDI - Capable

Question 19

Is a major player in EDI. A non profit organization that develops cross-industry national standards. Its membership consists of industry groups, trade associations and representatives of various federal government agencies.

Answer 19

American National Standard Institute (ANSI)

Question 20

In what year did ANSI form the Accredited Standards Committee?

Answer 20

1979

Question 21

This develops format requirements and data specifications for the different EDI standards used by corporate originators and their financial institutions.

Answer 21

ASC X12

Question 22

Is one piece of information - the item number, description, quantity, unit cost or total.

Answer 22

Data Element

Question 23

When several logically related data elements are grouped together, they make up ______ ?

Answer 23

Data Segments

Question 24

Data segments, which are like words, can be put together to make a ______ ?

Answer 24

Transaction Set

Question 25

Data segments, which are like words, can be put together to make a ______ ?

Answer 25

Transaction Set

Question 26

Developed international EDI standards to position the ACH network for growth of international payments. The Nacha Operating Rules also allow this payment related standards to be enveloped within the Addenda Records of the Corporate Trade Exchange.

Answer 26

UN/EDIFACT

Question 27

A committee within ANSI who is authorized to establish and maintain the guidelines and standards for the financial industry. This committee has formed working groups to address check standards, data security and personal identification number requirements that are used with MTE, POS or SHR Entries.

Answer 27

ASC X9

Question 28

This is a hosted service that acts as an intermediary between business partners to share data.

Answer 28

Value - added network (VAN)

Question 29

Organization may choose to use a proprietary network or banking system to transmit EDI information. When this is used, the organization not only transmits dats, but also a payment, making it a financial EDI transaction.

Answer 29

Value - Added Network (VAB)

Question 30

This transaction set is used by health insurers, informs the health care provider that services or treatments payment is covering. It can be used to send either payment or remittance, or both together.

Answer 30

ASC X 12 835 Health Care Claim Payment/Advice
(Hint: 35 = at this age you might need more healthcare)

Question 31

This transaction set is used for the electronic filing of tax return data. Each of these transaction sets can be enveloped within the addenda records of a CTX format.

Answer 31

ASC X12 813 - Electronic Filing of Tax Return Data.
(Hint: 13 = unlucky i.e., taxes)

Question 32

This transaction set is used for processing lockbox payments.

Answer 32

ASC X12 823
(Hint: 23 = Lebron James’ # needs BIG lockbox for his shoes)

Question 33

This transaction set is used by an agency or other entity to require an employer or other asset holder to withhold and deliver assets or income on behalf of a person or entity to whom such assets/income are owed, as in a levy, lien, or garnishment.

Answer 33

ASC X12 521 - Income or Asset Offset
(Hint: Only one beginning with “5”; 21 = Blackjack “21” you have income witch is an Assett)

Question 34

This transaction set is used to report abandoned property filing information, such as uncashed checks or abandoned bank account balances, to government agencies and may be used by the government agencies to distribute information on abandoned property for publication to the general public.

Answer 34

ASC X12 103
(Hing: 103 = by the time properties are 103 years old they may be abandoned)

Question 35

Provides the EDI format for transmitting information relating to payments.

Answer 35

ASC X12 820
(Hint: On August 20 Tiger woods wins third major in a calendar year and gets a good payment)

Question 36

This act requires that all new federal government payments (non-IRS) must be made by electronic funds transfer, subject to limited exceptions. It also collects a large number of corporate taxes electronically using programs such as income or sales and use tax, is required by most taxpayers.

Answer 36

Debt Collection Improvement Act of 1996

Question 37

This service utilizes the ACH network including direct deposit via ACH; direct payment via ACH; and consumer to consumer credit transactions. (often referred to as P2P transactions)

Answer 37

Consumer payment services

Question 38

This is used for payroll, government benefits, employee expense reimbursements, retirement/pension disbursements, interest, and dividend payments.

Answer 38

Direct Deposit

Question 39

This is used for both debit and credit. In the consumer space, these include preauthorized, recurring bill payments and bill payments that consumer initiates at a billing company’s website, both of which result in an ACH debit being initiated to the consumer’s account. it also includes bill payments that the consumer initiates via a financial institution’s online bill payment service, and which result in ACH credit payment being sent to the company/payee and an offsetting debit to the consumer’s account.

Answer 39

Direct Payment

Question 40

These are credit transactions uses the WEB standard entry class code and may be entries to the consumer’s own account at another financial institution or can be made to another consumer’s account at another financial instruction.

Answer 40

P2P