PPD Flashcards
What does PPD stands for?
Prearranged Payment and Deposit
What kind of entry is a PPD entry?
A credit or debit entry to a consumer’s account
Who starts a PPD entry?
An organization or business
What does a PPD entry require from the consumer?
Authorization (one-time or ongoing).
Can PPD be used for recurring payments?
Yes
What network are PPD entries a part of
The ACH Network
Name two applications of PPD entries
Direct Deposit and Direct Payment
What kind of ACH application in Direct Deposit?
A credit application
Where does a Direct Deposit send funds?
To the consumer’s account at the receiving depository financial institution (RDFI)
What are two benefits of Direct Deposit for consumers?
Time savings and cost savings
What are three benefits of Direct Deposit Consumers?
Safe, reliable, and faster funds availability
Does Direct Deposit work regardless of consumers location?
Yes
Who is responsible for getting authorization to initiate a PPD entry?
The Originator
What type of authorization is required for PPD debit entries?
Written and signed or similarly authenticated.
How can a consumer authorize a PPD credit entry?
Orally or by other non-written means.
Who is the Receiver in a PPD transaction?
The consumer whose account is being credited or debited.
Who initiates PPD credits and debits?
The Originator
What must PPD transactions follow?
The terms of the consumer’s authorization.
What is a PPD Credit?
Money deposited into the consumer’s account.
What is a PPD Debit?
Money withdrawn from the consumer’s account.
