AAP ACH Network Participants and Roles

Question 1

What is the primary role of an Originating Depository Financial Institution (ODFI) in the ACH network?

Accepted Answer

Receives ACH entries from Originators and forwards them to an ACH Operator

Answer

Only processes returned entries from RDFIs

Answer

Settles funds directly with consumers

Answer

Audits ACH transactions for NACHA compliance

Question 2

Which entity is responsible for receiving ACH entries and posting them to Receiver accounts?

Accepted Answer

RDFI (Receiving Depository Financial Institution)

Answer

ACH Operator

Answer

Originator

Answer

Third-Party Sender

Question 3

How is a Third-Party Sender (TPS) defined under NACHA Operating Rules?

Accepted Answer

A company that transmits ACH entries on behalf of Originators through an ODFI

Answer

A federal reserve bank that clears ACH entries

Answer

A direct customer of an ODFI with its own origination agreement

Answer

An ACH network operator that settles transactions

Question 4

Which two entities serve as ACH Operators in the United States?

Accepted Answer

FedACH and EPN (operated by The Clearing House)

Answer

NACHA and FinCEN

Answer

OCC and FDIC

Answer

JPMorgan Chase and Wells Fargo

Question 5

What term describes the company or individual that initiates ACH credit or debit entries with authorization from a Receiver?

Accepted Answer

Originator

Answer

RDFI

Answer

ACH Operator

Answer

Third-Party Processor

Question 6

When an ODFI uses a Third-Party Sender, the ODFI must ensure the TPS complies with:

Accepted Answer

NACHA Operating Rules

Answer

Only the state banking laws of its domicile

Answer

IRS regulations exclusively

Answer

The Federal Reserve Act