Nacha Operating Rules Flashcards
What does NACHA Stand for?
National Automated Clearing House
What is the primary purpose of NACHA Operating Rules?
To govern the electronic movement of funds through the ACH Network.
What are the two main types of ACH Transactions?
ACH Credits
ACH Debits
Who are the key participants in the ACH Network?
Originators
ODFIs
RDFIs
Receivers
ACH Operator
What type of authorization is required for ACH debits?
Written or Electronic Authorization from Receiver.
What is a PPD Transaction
Prearranged Payment Deposit
Used for consumer direct deposit and pre-authorized bill payments.
What is a CCD Transaction
Corporate Credit or Debit
Used for business-to-business ACH Payments
What is a WEB transaction?
An AC debit authorized via the internet or mobile device
What is an IAT Transaction?
International ACH Transaction
An entry that involves a financial agency outside the U.S.
What is the standard settlement time for most ACH Transactions?
One to two business days, depending on the transaction type.
What is the time frame for an RDFI to return an unauthorized ACH debit?
Generally 60 calendar days from the settlement date for consumer accounts.
What is the purpose of a prenotification (prenote)?
To test the validity of account information before sending live transactions.
What is Same Day ACH?
A faster processing option that allows for ACH credits and debits to be settled on the same business day.
What is the requirement for ACH Originators regarding security?
They must implement commercially reasonable fraud detection and security measures.
What is an ACH audit, and how often must it be conducted?
A review to ensure compliance with NACH rules, required annually.
What is the ACH Network’s primary regulatory framework?
Governed by NACHA Operating Rules and regulated by the Federal Reserve and the Electronic Fund Transfer Act (EFTA)
What is the rule for reinitiating a returned ACH debit?
It can be reinitiated up to two times within 180 days for reasons:
1.) NSF (R01)
2.) Uncollected Funds (R09)
What does NACHA require for security of sensitive banking data?
Data must be encrypted and protected according to industry security standards.
How do Same Day ACH transactions impact fraud risk?
They shorten the processing window, requiring stronger fraud detection and monitoring in real time.
What is the purpose of ACH Positive Pay?
A fraud prevention tool that allows businesses to pre-authorize ACH debits, blocking unauthorized transactions.
