ACH Operations
A person (a natural person or an organization) that has authorized an ODFI (directly or through a Third-Party Sender) to transmit, for the account of that person, a credit, debit or non-monetary entry to the Receiver’s account.
Originator
Facilitated the use of electronic records and electronic signatures in interstate and foreign commerce by ensuring the validity and legal effect of contracts entered into electronically
E-Sign Act
Occurs when a party to a transaction cannot provide the necessary funds, as contracted, in order for settlement to occur in the Originator’s account at the ODFI.
Credit Risk
Defines the physical file characteristics and the immediate origin and the destination.
File Header Record
The party or parties due payment indicated on a check.
Payee
The central facility for the clearing, delivery and settlement of entries between or among participating DFIs
ACH Operator
Implements the Electronic Funds Transfer Act
Regulation E
Occurs when a party to a transaction fails to comply, either knowingly or inadvertently with Network rules and policies, regulations and applicable U.S. and state law
Compliance Risk
Contains the detail and addenda record counts, hash totals and the dollar totals for the preceding detail entries within the batch.
Company/Batch Control Record
Real-time gross settlement system used to settle interbank funds transactions such as federal funds purchases, corporate payments and other large value payments.
FedWire Funds
How long does an ODFI have to dishonor a return?
The ODFI must transmit a dishonored Return entry to its ACH Operator within five banking days after the settlement date of the Return entry
Covers wholesale credit transfers, wire transfers and wholesale ACH credit transfers.
UCC 4A
Occurs when a payment transaction is initiated or altered by any party to the transaction (i.e., employees, interlopers, or organizations) in an attempt to misdirect or misappropriate funds with fraudulent intent.
Fraud Risk
Summarizes the control totals from the batch controls within the file and also contains the number of blocks and batches within the file.
File Control Record
Visa and Mastercard are what types of system? Discover and American Express are what type of System?
Visa and MC- Open Loop
Discover and American Express-Closed Loop
Acts as an intermediary between the ODFI and the Originator and there is no direct contractual agreement between the ODFI and the Originator.
Third Party Sender
Administers economic sanctions and embargo programs against target countries and regimes and other specifically identified companies and individuals to accomplish foreign policy and national security goals of the U.S.
OFAC
Occurs when a transaction is altered or delayed due to an unintentional error. Include clerical error or hardware and/or software failure
Operational Risk
Contains the information necessary to relate the entry to a Receiver, i.e., account number, routing number of the RDFI, Receiver’s name and identification number, dollar amount and Receiver’s account type.
An instant payment infrastructure developed by the Federal Reserve that allows financial institutions operating in the U.S. to provide instant payment services
FedNow
An organization that performs any function of ACH processing of entries on behalf of the Originator, the Third-Party Sender, the ODFI or the RDFI (not including the Originator, ODFI or RDFI acting in such capacity for such entries).
Third Party Service Provider
Which state does The Nacha Operating Rules specify as the choice-of-law state for transactions?
New York. Unless the Receiver and the RDFI have agreed that the laws of another jurisdiction govern their rights and obligations.
Occurs when a funds transfer system participant is unable to settle its commitments causing other participants to fail
Systemic Risk
Identifies the Originator and briefly describes the purpose of the entry (payroll credit); also contained is the routing number of the ODFI used for settlement. The data contained on this record applies to all entry detail records in the batch.
Company/Batch Header Record
An entity that has agreed to accept a payment card for the purchase of goods and services at its locations
Merchant