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

The RDFI must post ACH entries to the Receiver's account unless it has a valid return reason under the NACHA Operating Rules.

Question 2

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

Accepted Answer

The ODFI

Answer

The ODFI is ultimately responsible for the actions of its Third-Party Senders and must ensure their compliance with NACHA Operating Rules.

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

A Nested Third-Party Sender is a TPS that contracts with another TPS (rather than directly with an ODFI) to transmit ACH entries, creating a layered origination structure.

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

Non-participating DFIs do not have direct ACH network access, so a correspondent or gateway institution acts as the RDFI and passes the entry through.

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

NACHA rules require ODFIs to perform due diligence and a risk assessment of new Originators before transmitting entries on their behalf.

AAP - Accredited ACH Professional Practice Test

AAP - Accredited ACH Professional Practice Test

AAP ACH Network Participants and Roles 2