According to UCC 4A, what types of ACH Entries are addressed?

According to UCC 4A, what types of ACH Entries are addressed?

• A. Consumer debit entries
• B. Wholesale credit entries
• C. International ACH transfers
• D. Payroll payment entries

Answer: (B)

Under UCC 4A, the focus is primarily on commercial transactions and the rights and liabilities of financial institutions concerning the transfer of funds. Specifically, UCC 4A addresses wholesale credit entries, which pertain to transactions typically conducted between businesses or between a financial institution and its business clients. Wholesale credit entries usually involve larger, commercial transactions, and UCC 4A provides the legal framework governing these types of payments, establishing the responsibilities of parties involved in the transfer process. In contrast, consumer debit entries and payroll payment entries usually fall under different regulations, such as the NACHA Operating Rules, which cover consumer protection aspects and other operational guidelines separate from UCC 4A's scope. International ACH transfers also operate under distinct regulations and agreements that address international payments, separate from those defined in UCC 4A. Thus, the correct answer identifies the particular focus of UCC 4A on wholesale credit entries.

Under UCC 4A, the focus is primarily on commercial transactions and the rights and liabilities of financial institutions concerning the transfer of funds. Specifically, UCC 4A addresses wholesale credit entries, which pertain to transactions typically conducted between businesses or between a financial institution and its business clients.

Wholesale credit entries usually involve larger, commercial transactions, and UCC 4A provides the legal framework governing these types of payments, establishing the responsibilities of parties involved in the transfer process.

In contrast, consumer debit entries and payroll payment entries usually fall under different regulations, such as the NACHA Operating Rules, which cover consumer protection aspects and other operational guidelines separate from UCC 4A's scope. International ACH transfers also operate under distinct regulations and agreements that address international payments, separate from those defined in UCC 4A. Thus, the correct answer identifies the particular focus of UCC 4A on wholesale credit entries.