Before returning an ACH debit Entry as unauthorized, an RDFI must have a written statement signed by whom?

Before returning an ACH debit Entry as unauthorized, an RDFI must have a written statement signed by whom?

• A. The Originator
• B. The Receiver
• C. The ODFI
• D. The ACH Operator

Answer: (B)

In the context of ACH transactions, a Receiving Depository Financial Institution (RDFI) is required to obtain a written statement signed by the Receiver before returning an ACH debit entry as unauthorized. The Receiver is the individual or entity that receives the funds through an ACH credit or from which the funds are being debited in an ACH debit transaction. This requirement is outlined in the Nacha Operating Rules, which emphasize the need for proper authorization from the Receiver to ensure that they have indeed not authorized the transaction in question. Such a written statement serves as a formal declaration that the Receiver did not approve the debit entry, ensuring that the RDFI has the necessary documentation to support their action when returning the entry. In contrast to the correct answer, the other choices relate to parties not directly involved in the authorization of the ACH debit transaction. The Originator represents the entity that initiates the debit, the ODFI is the bank or financial institution that processes the transaction on behalf of the Originator, and the ACH Operator is simply the entity that facilitates the processing of ACH transactions. None of these parties directly provide the necessary authorization for the RDFI to act on the Receiver's behalf in this context, making the signed statement from the Receiver the critical element for returning

In the context of ACH transactions, a Receiving Depository Financial Institution (RDFI) is required to obtain a written statement signed by the Receiver before returning an ACH debit entry as unauthorized. The Receiver is the individual or entity that receives the funds through an ACH credit or from which the funds are being debited in an ACH debit transaction.

This requirement is outlined in the Nacha Operating Rules, which emphasize the need for proper authorization from the Receiver to ensure that they have indeed not authorized the transaction in question. Such a written statement serves as a formal declaration that the Receiver did not approve the debit entry, ensuring that the RDFI has the necessary documentation to support their action when returning the entry.

In contrast to the correct answer, the other choices relate to parties not directly involved in the authorization of the ACH debit transaction. The Originator represents the entity that initiates the debit, the ODFI is the bank or financial institution that processes the transaction on behalf of the Originator, and the ACH Operator is simply the entity that facilitates the processing of ACH transactions. None of these parties directly provide the necessary authorization for the RDFI to act on the Receiver's behalf in this context, making the signed statement from the Receiver the critical element for returning