Overview
Administrative Return Rate Threshold
3%
Transaction Set Used for Abandoned Property
ASC x12 103-Abandoned Property Filing
This is an example of what type of risk? General Manufacturing could have an employee who adds an extra zero to their payroll deposit.
Fraud Risk
What regulation governs funds availability?
Regulation CC
Implements the Electronic Fund Transfer Act(EFTA)
Regulation E
Unauthorized Entry Return Rate Threshold
.5%
Electronic transmission of business documents in a standard or structured format from one computer system to another without human intervention—from one trading partner to another trading partner.
Electronic Data Interchange (EDI)
This is an example of what type of risk? Resolute Credit Union have many new employees who have not been properly trained to process ACH and as a result make an error.
Operational Risk
Gives electronic signatures and documents the same force in law as those done with ink on paper.
E-Sign Act
Governs the clearing and settlement of ACH credit and debit items by the Federal Reserve Bank, ODFIs and RDFIs
Federal Reserve Bank Operating Circular 4
Overall Return Rate Level
15%
Non-Profit organization that develops cross-industry national standards.
American National Standards Institute (ANSI)
This is an example of what type of risk? Dynamic Bank offers ACH services to General Manufacturing, but they also offer RDC and a business debit card. General Manufacturing starts to deposit bad checks in order to cover the funding for ACH entries they have originated.
Cross-Channel Risk
A comprehensive body of state law (adopted on a generally uniform basis by each state) governing commercial electronic funds transfer transactions.
Uniform Commercial Code Article 4A
Provides rules for financial institutions that use EFT to process federal tax payments through EFTPS.
Title 31 of the Code of Federal Regulation (CFR) Part 203
The central facility for the clearing, delivery and settlement of entries between or among participating DFIs.
ACH Operator
The code that identifies Entries initiated at an “Electronic terminal,” as defined in Regulation E, to transfer funds to or from a Consumer Account maintained with an RDFI, i.e., an ATM cash deposit or withdrawal.
Machine Transfer-Entry (MTE)
This is an example of what type of risk? Dynamic Bank has decided that they are not going to worry about implementing a faster payments option for several years.
Strategic Risk
The procedural manual for 31 CFR Part 210 which includes instructions and requirements for processing federal government ACH payments and collections.
The Green Book
Governs the handling of payments for the Bureau of Public Debt made through the ACH Network
Refers to the path the check follows.
Check Clearing
These entries are used much the same way as CCD entries, but may include up to 9,999 addenda records, allowing considerable payment related data to be included.
Corporate Trade Exchange Entries (CTX)
This is an example of managing this type of risk: Dynamic Bank has implemented logical exposure limits and review their Originator’s financial condition on a regular basis. They also require prefunding for certain credit files.
Credit(Exposure) Risk
Required FIs to protect and identify nonpublic personal information (NPPI) practices and safeguard sensitive data
Gramm-Leach-Bliley Act
Governs check collection through the Federal Reserve Bank and wire Transfer
Regulation J