Podcast
Questions and Answers
Which of the following is a risk that an ODFI may face when processing ACH debits?
Which of the following is a risk that an ODFI may face when processing ACH debits?
- The financial institution fails to comply with NACHA rules
- The ODFI does not establish policies, procedures, and limits
- The RDFI allows the debit to overdraw its customer's account
- The originating account has insufficient funds (correct)
What type of businesses are considered higher risk for an ACH operation?
What type of businesses are considered higher risk for an ACH operation?
- Gambling and adult entertainment firms (correct)
- Technology and healthcare organizations
- Financial institutions and government agencies
- Retail and manufacturing companies
What should an ODFI's policies clearly state about ACH customers?
What should an ODFI's policies clearly state about ACH customers?
- The impact of ACH transaction risk on liquidity
- The types of businesses and customers that are acceptable (correct)
- The volume of uncollected ACH transactions
- The creditworthiness of its customers
What should an ODFI conduct for its originating customers to manage risk?
What should an ODFI conduct for its originating customers to manage risk?
What should an ODFI establish and periodically review for its customers?
What should an ODFI establish and periodically review for its customers?
What should an RDFI establish to mitigate its credit exposures?
What should an RDFI establish to mitigate its credit exposures?
What does noncompliance with Regulation E expose a financial institution to?
What does noncompliance with Regulation E expose a financial institution to?
Why should operational risks be managed closely in ACH activities?
Why should operational risks be managed closely in ACH activities?
Which organization(s) have clear expectations that financial institutions will manage ACH risks?
Which organization(s) have clear expectations that financial institutions will manage ACH risks?
How can the risk of fraud be mitigated in ACH operations?
How can the risk of fraud be mitigated in ACH operations?
When does the ODFI incur credit risk for ACH credit entries?
When does the ODFI incur credit risk for ACH credit entries?
When does the RDFI incur credit risk for ACH credit entries?
When does the RDFI incur credit risk for ACH credit entries?
When does the ODFI incur credit risk for ACH debit entries?
When does the ODFI incur credit risk for ACH debit entries?
How can financial institutions control ACH risks?
How can financial institutions control ACH risks?
