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

NACHA – The Electronic Payments Association is the self-regulatory organization that writes and enforces the NACHA Operating Rules for the ACH network.

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

A Third-Party Sender transmits entries to an ODFI and is in the direct chain of transmission, while a Third-Party Processor provides back-office services without being the sending point to the ODFI.

Question 3

NACHA membership is required for which entities?

Accepted Answer

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

Answer

NACHA membership is required for depository financial institutions that participate directly in the ACH network as ODFIs or RDFIs.

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

A Gateway Operator is an ODFI or RDFI that transmits ACH entries to or receives them from a financial agency outside the United States.

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

NACHA rules require that ODFIs include a provision in their Originator agreements binding the Originator to comply with the NACHA Operating Rules.

AAP - Accredited ACH Professional Practice Test

AAP - Accredited ACH Professional Practice Test

AAP ACH Network Participants and Roles 3