AAP FLASHCARDS WITH CORRECT
ANSWERS
A company or individual that has been authorized by the
Receiver to initiate either a credit or debit ACH entry to their
account. ANSWER Originator
A financial institution that receives payment instructions from
Originators and forwards the entries to the ACH Operator.
ANSWER Originating Depository Financial Institution (ODFI)
ACH Payment Transaction are accumulated throughout the
day, sent to the ACH Operator, sorted by destination, and
transmitted in groups at specified times. ANSWER Batch
Process, store-and-forward system
An individual or a company that has authorized the Originator
to initiate an ACH entry to their account with the RDFI.
ANSWER Receiver
Financial institution identified by the routing number encoded
on the MICR lineof a check. ANSWER Paying Bank (Payor's
Depository Financial Institution)
A financial institution that receives ACH entries from the ACH
Operator and posts the entries to the accounts of its depositors.
ANSWER Receiving Depository Financial Institution (RDFI)
The central clearing facility for ACH transactions. ANSWER
ACH Operator
,A voluntary association of depository institutions that facilitate
the clearing of checks or electronic items through the direct
exchange of funds between memebers. ANSWER Clearing
House
An entity that issues a credit or debit card to the Cardholder.
ANSWER Card Issuer
The party to whom a check is made payable. ANSWER Payee
A person or entity that is issued a credit or debit account that is
accessed through the use of a card. ANSWER Cardholder
Legal framework for the ACH Network ANSWER 1. ACH Rules
2. UCC 4A
3. Reg E
4. Reg CC
The national trade association for electronic payments, which
establishes the rules, industry standards and procedures
governings the exchange of commercial ACH payments by
depository finacial institutions. ANSWER NACHA - The
Electronic Payments Network
An optional, variable format field of the MICR line of a check.
ANSWER Auxiliary On-Us Field
Payment system to which net settlement applies. ANSWER
ACH Payment System
Payment system governed by the Expedited Funds Availability
Act, UCC 3, UCC 4, OFAC, Reg CC, and Reg J ANSWER
Check Payment System
Payment system to which real-time, gross settlement applies.
ANSWER Wire Transfer Payment System
, Name the clearing and settlement methods for checks.
ANSWER 1. Direct Presentment
2. Federal Reserve Bank
3. Clearing House
4. Correspondent
Payment system governed by the Electron Funds Transfer Act,
Reg Z, Visa, Mastercard, and Fair Credit Billing. ANSWER
Card Payment System
Payment system governed by UCC 4A, OFAC, Reg J, Reg CC,
OCC 235, and FRB Risk Policy. ANSWER Wire Transfer
Payment System
Payment system governed by the ACH Rules, UCC 4, UCC 4A,
Electronic Funds Transfer Act, Reg E, The Right to Financial
Privacy, Reg D, and Reg CC. ANSWER ACH Network
Two Service provided by Fedwire ANSWER 1. Funds Service
2. Securities Service
The basic types of checks in the collection cycle. ANSWER 1.
On-us checks
2. Transit checks
SCOPE ANSWER Special Committee On Paperless Entries
Payment system whose participants include the Payor, Payee,
Bank of First Deposit, Correspondent Bank/Bankers'
Bank/Clearing House, and Payor's Depository Financial
Institution. ANSWER Check Payment System
Payment system whose participants include the Cardholder,
Card Issuer, Acquirer, Card Network and Merchant. ANSWER
Card Payment System
ANSWERS
A company or individual that has been authorized by the
Receiver to initiate either a credit or debit ACH entry to their
account. ANSWER Originator
A financial institution that receives payment instructions from
Originators and forwards the entries to the ACH Operator.
ANSWER Originating Depository Financial Institution (ODFI)
ACH Payment Transaction are accumulated throughout the
day, sent to the ACH Operator, sorted by destination, and
transmitted in groups at specified times. ANSWER Batch
Process, store-and-forward system
An individual or a company that has authorized the Originator
to initiate an ACH entry to their account with the RDFI.
ANSWER Receiver
Financial institution identified by the routing number encoded
on the MICR lineof a check. ANSWER Paying Bank (Payor's
Depository Financial Institution)
A financial institution that receives ACH entries from the ACH
Operator and posts the entries to the accounts of its depositors.
ANSWER Receiving Depository Financial Institution (RDFI)
The central clearing facility for ACH transactions. ANSWER
ACH Operator
,A voluntary association of depository institutions that facilitate
the clearing of checks or electronic items through the direct
exchange of funds between memebers. ANSWER Clearing
House
An entity that issues a credit or debit card to the Cardholder.
ANSWER Card Issuer
The party to whom a check is made payable. ANSWER Payee
A person or entity that is issued a credit or debit account that is
accessed through the use of a card. ANSWER Cardholder
Legal framework for the ACH Network ANSWER 1. ACH Rules
2. UCC 4A
3. Reg E
4. Reg CC
The national trade association for electronic payments, which
establishes the rules, industry standards and procedures
governings the exchange of commercial ACH payments by
depository finacial institutions. ANSWER NACHA - The
Electronic Payments Network
An optional, variable format field of the MICR line of a check.
ANSWER Auxiliary On-Us Field
Payment system to which net settlement applies. ANSWER
ACH Payment System
Payment system governed by the Expedited Funds Availability
Act, UCC 3, UCC 4, OFAC, Reg CC, and Reg J ANSWER
Check Payment System
Payment system to which real-time, gross settlement applies.
ANSWER Wire Transfer Payment System
, Name the clearing and settlement methods for checks.
ANSWER 1. Direct Presentment
2. Federal Reserve Bank
3. Clearing House
4. Correspondent
Payment system governed by the Electron Funds Transfer Act,
Reg Z, Visa, Mastercard, and Fair Credit Billing. ANSWER
Card Payment System
Payment system governed by UCC 4A, OFAC, Reg J, Reg CC,
OCC 235, and FRB Risk Policy. ANSWER Wire Transfer
Payment System
Payment system governed by the ACH Rules, UCC 4, UCC 4A,
Electronic Funds Transfer Act, Reg E, The Right to Financial
Privacy, Reg D, and Reg CC. ANSWER ACH Network
Two Service provided by Fedwire ANSWER 1. Funds Service
2. Securities Service
The basic types of checks in the collection cycle. ANSWER 1.
On-us checks
2. Transit checks
SCOPE ANSWER Special Committee On Paperless Entries
Payment system whose participants include the Payor, Payee,
Bank of First Deposit, Correspondent Bank/Bankers'
Bank/Clearing House, and Payor's Depository Financial
Institution. ANSWER Check Payment System
Payment system whose participants include the Cardholder,
Card Issuer, Acquirer, Card Network and Merchant. ANSWER
Card Payment System
