AAP ACH Network Participants and Roles 3

Question 1

Which entity establishes the rules and operating standards governing the ACH network?

Accepted Answer

NACHA – The Electronic Payments Association

Answer

The Federal Reserve Board

Answer

The Office of the Comptroller of the Currency (OCC)

Answer

The Federal Deposit Insurance Corporation (FDIC)

Question 2

What distinguishes a Third-Party Processor from a Third-Party Sender under NACHA rules?

Accepted Answer

A TPS transmits entries directly to an ODFI; a Third-Party Processor provides processing services but does not transmit entries as a sending point

Answer

They are interchangeable terms under NACHA rules

Answer

Third-Party Processors are NACHA members; Third-Party Senders are not

Answer

Third-Party Processors handle only returned entries

Question 3

NACHA membership is required for which entities?

Accepted Answer

ODFIs and RDFIs (depository financial institutions participating in the ACH network)

Answer

All Originators of ACH entries

Answer

All Third-Party Senders

Answer

Federal Reserve Banks only

Question 4

The Gateway Operator role in international ACH is performed by:

Accepted Answer

An ODFI or RDFI that transmits or receives entries across national borders

Answer

NACHA exclusively as the global network administrator

Answer

The U.S. Treasury Department

Answer

FinCEN as the international compliance gatekeeper

Question 5

An Originator's agreement with its ODFI must include:

Accepted Answer

The Originator's agreement to comply with the NACHA Operating Rules

Answer

A complete list of all Receivers to be debited

Answer

Monthly transaction volume caps approved by NACHA

Answer

Written approval from the ACH Operator for each entry type

Question 6

Government agencies that originate ACH entries are classified as:

Accepted Answer

Federal or state government Originators

Answer

Third-Party Processors

Answer

ACH Operators

Answer

Non-participating DFIs