AAP ACH Network Participants and Roles 2

Question 1

What is the primary obligation of an RDFI when it receives an ACH debit entry?

Accepted Answer

Post the entry to the Receiver's account unless a valid return reason exists

Answer

Obtain the Receiver's approval before posting

Answer

Forward the entry to NACHA for approval

Answer

Hold the entry for 5 business days before posting

Question 2

Which party in the ACH network bears ultimate responsibility for the actions of a Third-Party Sender?

Accepted Answer

The ODFI

Answer

NACHA

Answer

The ACH Operator

Answer

The Receiver's bank

Question 3

A Nested Third-Party Sender is defined as:

Accepted Answer

A TPS that itself uses another TPS to transmit entries to an ODFI

Answer

An ODFI that sponsors multiple originators simultaneously

Answer

A direct ACH network member with nested accounts

Answer

A Federal Reserve branch providing sub-processing services

Question 4

When a non-participating DFI's customer receives an ACH entry, which entity typically acts as the RDFI?

Accepted Answer

A correspondent or gateway institution that processes on behalf of the non-participating DFI

Answer

The non-participating DFI itself

Answer

The Federal Reserve Bank directly

Answer

NACHA as the network administrator

Question 5

Before originating entries for a new Originator, an ODFI is required by NACHA rules to:

Accepted Answer

Conduct a risk assessment and due diligence review of the Originator

Answer

File a report with FinCEN about the new relationship

Answer

Notify the RDFI in advance of the first entry

Answer

Obtain pre-approval from NACHA

Question 6

An ODFI's warranty to the ACH network when transmitting entries includes:

Accepted Answer

That entries comply with NACHA Operating Rules and that the Originator has obtained proper authorization

Answer

That all entries will settle on the same day

Answer

That entries are guaranteed to be fraud-free

Answer

That the RDFI will post entries within one hour of receipt