For how long must the Originator retain a copy of the front of the source document for an ARC Entry?

For how long must the Originator retain a copy of the front of the source document for an ARC Entry?

• A. 1 year
• B. 2 years
• C. 5 years
• D. 3 years

Answer: (B)

The correct duration for retaining a copy of the front of the source document for an ARC (Accounts Receivable Check) Entry is two years. This requirement is essential for compliance with NACHA (National Automated Clearing House Association) rules, which dictate that the Originator must keep proper documentation for a specific period to ensure that records are available if disputes arise or verification is needed. Retention for two years allows for sufficient time for potential disputes or issues that might occur in the ACH network regarding the transaction. This duration is a balance between practical operational needs and the necessity of having access to transaction records for auditing and compliance purposes. Other time frames mentioned, such as one year, three years, or five years, do not align with the established rules for ARC Entries and could result in non-compliance if an Originator fails to maintain the appropriate records for the mandated period. Understanding these retention requirements is crucial for maintaining compliance within the ACH process and ensuring that all transactions are properly documented.

The correct duration for retaining a copy of the front of the source document for an ARC (Accounts Receivable Check) Entry is two years. This requirement is essential for compliance with NACHA (National Automated Clearing House Association) rules, which dictate that the Originator must keep proper documentation for a specific period to ensure that records are available if disputes arise or verification is needed.

Retention for two years allows for sufficient time for potential disputes or issues that might occur in the ACH network regarding the transaction. This duration is a balance between practical operational needs and the necessity of having access to transaction records for auditing and compliance purposes.

Other time frames mentioned, such as one year, three years, or five years, do not align with the established rules for ARC Entries and could result in non-compliance if an Originator fails to maintain the appropriate records for the mandated period. Understanding these retention requirements is crucial for maintaining compliance within the ACH process and ensuring that all transactions are properly documented.