Topics of Note from AAP Handbook - ACH Ops/Other Pymt Systems Flashcards
In an effort to improve the payment system, congress enacted the _______________, which encouraged private sector ACH operators to compete with the FRB
Monetary Control act in 1980
The FRB operates on a _________ basis
for-profit
A ________ is an organization that transmits entries to an ACH operator on behalf of an ODFI
sending point
A ____________ can be an RDFI itself, a participating DFI or a designated Third-Party service provider that has entered into an agreement to receive ACH files for the RDFI.
receiving point
An organization that performs any function of ACH processing of entries on behalf of the originator, the third-party sender, the ODFI or RDFI.
Third-party service provider
Type of third-party service provider. A__________ acts as an intermediary on behalf of the originator or another third-party sender in transmitting entries between an originator and the ODFI when there is not an origination agreement directly between the originator and the ODFI.
third-party sender
In the case of third-party senders, there is no origination agreement between the _______ and __________.
ODFI, originator
The __________ Requires an agreement between the ODFI and the third-party sender AND between the third-party sender the nested third-party sender.
The NACHA operating rules
A third-party sender is always a ____________ that acts on behalf of an originator, but a ______________ does not always act as a third-party sender.
third-party service provider
A third-party service provider is considered to be a _________________ when it acts as an intermediary between the ODFI and the originator and there is no contractual agreement between the originator and the ODFI.
third-party sender
Limit of same day debit entries
$1,000,000 or less
The first step in processing an automated file is a _______________. This produces an edit report that shows the content of the file and displays batches of ACH entries.
computer edit
Some items commonly included in an _______________ are header info, routing and acct numbers, dollar amount, tran code, trace numbers and check digit
edit report
Batch totals are listed by entry count and dollar amount at the end of the ___________________
detailed entries
stores ACH entries for posting
pending file
ACH entries submitted with the same day effective date by 10:30 AM will settle at __________, those submitted by 2:45 will settle at _____________ and those received by 4:45 PM will settle at ____________ (all times EST).
1:00 PM, 5:00 PM, 6:00 PM
Entries other than Same Day ACH entries will settle at ___________on the settlement date.
8:30 AM
ACH debits will be delivered to an RDFI no earlier than _______ banking day prior to the settlement date
one
NACHA operating rules sates that _______ cannot be posted prior to the settlement date.
debits
ACH credits will be delivered to an RDFI no earlier than _______ banking days prior to the settlement date (NOTE: Federal Government recurring pymts can be delivered earlier).
two
Settlement between the originator and the ODFI is governed by ___________
agreement
Settlement between the RDFI and the Receiver is determined by the:
NACHA operating rules
Federal Reserve schedules
agreement
ACH settlement procedures are the same for consumer and _______ transactions
corporate
Returns must be transmitted to the ACH operator by its deposit deadline for the entry to be made available to the ODFI no later than:
the opening of business on the second banking day following the settlement date of the original entry
***An RCK return entry must be transmitted by the RDFI to its ACH operator by:
midnight of the second banking day following the banking day of receipt of the ACH entry
The NACHA operating rules do not specify a notification method or the specific timeframe that the ODFI must notify the _______ of a return entry
originator
If a dispute exists after the RDFI contests or corrects a dishonored return, the resolution should be negotiated _______________________________________
outside the ACH processing system
the placement of the file, batch or entry into an idle state during processing by the ACH operator due to an error condition
“pend”
A file, batch, or entry placed into a pending status by the operator will await actions to be released or rejected based on the instructions provided by ____________________
the sending point
For an NOC, the change requested by an RDFI is identified by a:
three-character change reason code (ex C01).
A reversing file must be sent within ___________ of discovering the error
24 hours
