Other Pymt Systems/Terms of Note Flashcards
Refers to the path that a check follows
Check Clearing
Refers to the process of ensuring that the funds represented by a check are debited from and credited to the appropriate accts
Check Collection
Critical wholesale service for direct participation with the FRB
Fedwire Funds Service
Funds transfers made over the Fedwire Funds Service occur almost instantaneously and are ________________________ upon completion of processing by the FRB
final and irrevocable
The two operational components of the Fedwire Funds Service
- Computer applications that process and record individual funds and securities transfers as they occur
- A national communications network that electronically links the FRB with DFI’s
Most used application to access the Fedwire services (primarily by large FI’s)
FedLine Direct
Second-most used application to access the Fedwire services (primarily by mid and low volume FI’s)
FedLine Advantage
Fedline transfers may be initiated offline by providing transfer instructions to the FRB via ____________
Telephone
The Fedwire Funds Service is a __________________ system
Credit/push
Deadline for initiating on-line third-party transfers through the Fedwire Funds Service
6:45 EST
Mastercard and Visa operate in __________ ___________ networks that include issues, customers, processors, merchants, gateway partners and acquirers.
Open Loop
American Express and Discover are considered ________ _________ pymt cards because the card issuer also processes pymts.
Closed Loop
EVM (Europay, Mastercard, Visa) was implemented in the US to prevent ______________
Card-present fraud
Settlement on the FedNow Service is __________ and __________
Final, Irrevokable
The Fedwire Securities service is a _________________ system
Debit/Pull
The Fedwire Securities are held and transferred in electronic form known as ___________________
Book-Entry Securities
The use of a ______________ debit card results in immediate funds transfer
PIN/Online
A master file maintained by the ACH Operator to verify the file ________ routing numbers and other pertinent information of participating depository financial institutions.
Central Information File (CIF)
The final character of a routing number that may be used to test the validity of a specific routing number.
Check Digit
The balance of an account maintained by a financial institution at a Federal Reserve or correspondent bank.
Clearing Balance
The transfer of funds from diverse accounts into a central account to effect more efficient cash management.
Cash Concentration
The transfer of funds from a central account to diverse accounts to effect more efficient cash management.
Cash Disbursement
A large dollar wire transfer system operated by the Clearing House Interbank Payments System Company.
Clearing House Interbank Payments Systems (CHIPS)
A set of instructions governing the enciphering and deciphering of messages.
Key
The time that transpires between the granting and receiving of availability on items deposited for clearing at the Federal Reserve Bank by financial institutions.
Federal Reserve Bank Float
The administrative responsibility for the distribution of unique data security keys.
Key Management
The non-public personal information (NPPI), including financial information, of a natural person used to create, or contained within, an entry and any related addenda record.
Protected Information (NPPI)
A financial institution that sends ACH entries to a correspondent bank.
Respondent
The advice, either paper or electronic, prepared by the ACH Operator stating the dollar value of an ACH file. This advice may include multiple files presented that day.
Statement of ACH Activity
An electronic mechanism that routes transaction data captured from a plastic card and an electronic funds transfer terminal to the authorizing data processor in order to obtain the authorization of the card-issuing institution.
Switch
Return on investment, usually expressed as a percentage of investment.
Yield
Electronic checks/Electronic return checks conforms with the ____________ standards
ANS X9.100-187
Governs image rules for check exchanges between ECCHO members
ECCHO Rules
Governs ACH chk conversions (ARC, BOC, POP) and chk truncation (RCK, EXC, TRC, TRX)
NACHA Operating Rules
Framework for the remittance transfer law
Reg E, Subpart B
