Rules & Regulations Flashcards
32%
What is the Administrative Return Rate Level?
3%
What SEC Code adopts the BSA’s “Travel Rule?”
IAT
An Originator of this SEC Code is required to conduct an annual IT audit.
WEB debit
How long must an Originator retain the authorization for a PPD Entry?
2 years from the termination or revocation of the authorization
What is the maximum timeframe in which a report of possible Rules violation must be submitted?
Within 90 days of the alleged Rules violation
What is included in an authorization for a commercial POP Entry?
Notice provided to Receiver by the Originator at the point of purchase and written authorization signed by the Receiver.
What is the number of days a financial institution has to complete its investigation of an alleged error before it is required to provide provisional credit to the consumer, according to Regulation E?
10 business days
WEB Entriesare subject to the requirements of this Regulation.
Regulation E
Which ACH applications require the Originator to use a MICR reading device to capture the Receiver’s banking information from the MICR line of the Eligible Source Document?
ARC, BOC, and POP
What is the Unauthorized Entry Return Rate?
0.50%
What is the amount of time a Participating Depository Financial Institution must retain all Records?
6 years from the date the Entry was Transmitted unless specified otherwise
What transactions are governed by UCC4A?
Commercial wholesale credits, including CCD / CTX credits, wire transfers, FedNow, and RTP transactions
What governs the clearing and settlement of ACH items by the FRB, ODFIs, and RDFIs?
FRB OC4
What governs the use of EFTs for processing federal tax payments through EFTPS?
Title 31 of the Code of Federal Regulations (CFR) Part 203
What governs the handling of payments for the Bureau of Public Debt made through the ACH Network?
Title 31 of the Code of Federal Regulations (CFR) Part 370
Who establishes federal government ACH policy?
Bureau of Fiscal Service
Which regulation requires consumers be able to “comparison shop” for credit by requiring disclosures about terms and cost?
Regulation Z
What is the fee paid by an ODFI to the corresponding RDFI for a Same Day Entry?
Same Day Entry fee
What are the SEC Codes that require information on the terminal location, terminal city, and the terminal state to be disclosed on the consumer Receiver’s periodic statement?
MTE, POS, and SHR
What regulation governs wire transfers through the FRB?
Regulation J
What SEC Code applies to Entries initiated by a consumer Originator to a Consumer Account of the Receiver based on any form of authorization that is communicated from the Receiver to the Originator via the Internet or a Wireless Network?
Credit WEB Entry
Which ANSI transaction set is used for Transmitting a healthcare claim payment / advice?
ASC X12 835
What is designated as UCC 4A choice of law unless otherwise stated in an agreement?
State of New York
What entity that may provide a written interpretation of the ACH Rules?
Nacha Board of Directors
What is the name of the digital representation of the front and back of a Check that provides the same obligations and protections of the original Check?
Image Replacement Document (IRD) or substitute check
What is the name of the master list maintained by the Department of the Treasury that contains the routing numbers (RTNs) and addresses of financial institutions receiving federal government ACH payments?
Financial Organization Master File (FOMF)
What is the procedural manual used for ACH transactions originated on behalf of the federal government?
Green Book
What regulation implements the Electronic Fund Transfer Act (EFTA)?
Regulation E
If an RDFI requires written confirmation of a verbal stop payment order, what is the time frame after which the verbal stop payment order ceases to be binding?
14 calendar days
What governs federal government ACH payments?
Title 31 of the Code of Federal Regulations (CFR) Part 210
According to the Green Book, what is the 45-day amount for a Reclamation?
The dollar amount of all post-death benefit payments received within 45 calendar days following the death of a beneficiary.
An RDFI may determine which sections of the Nacha Operating Rule apply to the processing of an Entry based on what?
SEC Code
Per Regulation E, what is a transfer of funds that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer’s account?
Electronic fund transfer
Which participants are responsible for accepting all Entries that comply with the Nacha Operating Rules?
RDFI
Which ACH payment applications may not be returned as (R07) authorization revoked?
ARC, BOC, and POP
What is the length of time a consumer stop payment order remains in effect?
The earlier of:
1. The withdrawal of the stop payment order by the Receiver;
2. The Return of the debit Entry; or
3. Where the stop payment order applies to more than one debit Entry relating to a specific authorization involving a specific Originator; the return of all such debit Entries
What are the three methods by which a Receiver may provide an Eligible Source Document for an ARC Entry to an Originator?
- Via the U.S. mail or delivery service
- At a drop box location, or
- In person for payment of a bill at a manned location
What is the time frame for providing a stop payment order for an Entry initiated to a Non-Consumer Account?
Either verbally or in writing at such time and in such manner as to allow the RDFI a reasonable opportunity to act upon the stop payment order prior to acting on the debit Entry; remains in effect for six months unless the RDFI determines to honor the stop payment order for a longer period of time.
How long must an Originator retain the authorization for a PPD Entry?
2 years from the termination or revocation of the authorization
What Regulation governs payroll card accounts?
Regulation E
What is the time frame that an RDFI must retain a copy of a WSUD?
At least 1 year from the Settlement Date of the Extended Return Entry(ies) to which the WSUD relates
How long must an ACH Operator retain a record of all Entries, Return Entries, and Extended Returned Entries they received or Transmitted?
For 1 year from the date the Entry was received or Transmitted
What is the minimum contact information that must be provided by an ODFI for proof of authorization for a CCD, CTX, or inbound IAT Entry to a Non-Consumer Account for inquiries regarding authorization?
The Originator’s name, and phone number or email address for inquiries regarding authorization of Entries
Who provides indemnification from and against any and all claims, demands, losses, liabilities, and expenses, including attorney’s fees and costs, related to initiated Entries, that result directly or indirectly from a breach of the Nacha Operating Rules?
ODFI indemnification
How does an RDFI agree to comply with the provisions of 31 CFR Part 210 and the Green Book?
By accepting a recurring benefit payment from the government
What is the name of the inquiry process, which is separate and distinct from a Rules enforcement proceeding, used as a starting point to evaluate the origination activity of Originators and Third-Party Senders who breach the Administrative Return Rate Level or Overall Return Rate Level?
Nacha origination inquiry and review process
What is fee called that is paid by a respective ODFI to the RDFI for a debit Entry returned as unauthorized?
Unauthorized Entry Fee
Which party is liable under UCC 4A for unauthorized Entries when an Originator and an ODFI do not agree on a commercially reasonable security procedure and, therefore, no security procedure is in effect?
ODFI
What is the overall Return rate level for all debit Entries, except RCK?
15%
Which ACH participant must register any Third-Party Senders under the Third-Party Sender registration rule?
ODFI
Stop payment Returns fall into which category of Return rate reporting?
Overall Return Rate
What date must a Rule compliance audit be completed by?
December 31
What Return reason codes are included in the Administrative Return Rate Level?
R02, R03, and R04
What Return reason codes are included in the Unauthorized Entry Return Rate?
R05, R07, R10, R11, R29, and R51
At minimum, a written stop payment order for a Non-Consumer Account will remain in effect for how long?
The earlier of:
1. The withdrawal of the stop payment order by the receiver;
2. The return of the debit Entry; or
3. Six months from the date of the stop payment order
According to UCC 4A, if the RDFI fails to make funds available to the Receiver, it may be liable for what types of damages?
Consequential damages
What party has to disclose notice of receipt of the Entry to the Receiver according to UCC 4A, but only when there is an agreement in place to do so?
RDFI
According to the E-Sign Act, what characteristics must a valid electronic signature contain?
Consumer’s identity and assent
Who administers and enforces economic and trade sanctions in support of U.S. national security and foreign policy objectives?
Office of Foreign Assets Control (OFAC)
What are the number of years Treasury policy states post-death payments may be reclaimed?
6 years from the date on the Notice of Reclamation (NOR)
What is the time frame associated with the Reinitiation of Entries returned as insufficient or uncollected funds?
Within 180 days of the Settlement Date of the original Entry
Which ACH participant is required to disclose information to the consumer regarding Check conversion?
Originator
Which Regulation states that a financial institution may not impose a fee related to any aspect of the error resolution process for unauthorized EFTs?
Regulation E
According to UCC 4A, the RDFI must pay which participant upon acceptance of an Entry?
Beneficiary
What states an RDFI should respond to a DNE by flagging the deceased Receiver’s account to prevent future benefit payments from posting?
Green Book
According to the Nacha Operating Rules, Originators of debit WEB Entries are required to do what?
- Perform account validation
- Perform an annual IT audit
- Use a commercially reasonable fraudulent transaction detection system
What is a Non-Monetary Entry Transmitted by an Originator for conveying payment-related information in a CCD or CTX Entry to a Non-Consumer Receiver, or an IAT Entry to any Receiver called?
Zero-Dollar Entry
What requires that virtually all non-tax related payments made by the federal government be made via electronic funds transfer?
Electronic Funds Transfer (EFT) mandate
Regulation E states this this constitutes authorization for an Check conversion.
Notice plus Receiver going forward with transaction
What is a Point-of Sale (POS) Entry?
A debit Entry initiated at an “electronic terminal,” defined in Regulation E, to 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. A POS Entry may also be an adjusting or other credit Entry related to such debit Entry, transfer of funds, or obligation.
Under the terms of this act, any agreement, authorization, Written Statement of Unauthorized Debit, or other record that necessitates a signature or similarly authenticated method can utilize an Electronic Signature.
Electronic Signatures in Global and National Commerce (E-Sign) Act
What is a comprehensive legal framework governing wholesale electronic funds transfers, which outlines the rights and responsibilities of Originators?
Uniform Commercial Code (UCC) Article 4A
Payments to a Receiver by an RDFI related to an Entry governed by UCC 4A can be made on what basis until the RDFI receives final settlement?
Provisional
Under the provisions of the UCC 4A, which party is not held liable if the ODFI makes an error, such as a duplicate Entry, incorrect amount, or wrong receiver?
Originator
What is a transaction called in which an Originator, ODFI, or Third-Party Sender debits a consumer’s account to collect funds but fails to complete the corresponding payment (credit) to the party owed the payment?
Incomplete Transaction
Upon a written request from the RDFI, proof of authorization related to a CCD or CTX Entry an ODFI must provide what?
- An accurate record evidencing the Receiver’s authorization, or
- Contact information for the Originator that at a minimum, includes
(a) the Originator’s name, and
(b) the Originator’s phone number or email address for inquiries
regarding the authorization
An RDFI may rely solely on what information contained in an Entry for the purpose of posting the Entry to a Receiver’s account?
Account number, regardless of whether the name of the Receiver in the Entry matches the name associated with the account number in the Entry.
When an ODFI agrees to pay a fee to the respective RDFI for a debit Entry (except for a debit IAT Entry) that is returned with a Return reason code of R05, R07, R10, R11, R29, or R51 is called what?
Unauthorized Entry Fee
When the registering participant has one or more Third-Party Sender relationships, what information must be provided in the initial registration process?
- ODFI’s name and contact information
- Name and principal business location of the Third-Party Sender
- The routing number used in ACH transactions originated for the Third-Party Sender
- The Company Identification number(s) of the Third-Party Sender
What is an ACH Operator or a Participating DFI that acts as an entry point to or exit point from the U.S. for ACH payment transactions called?
Gateway
