What does the Originator Status Code identify in an ACH Record?

What does the Originator Status Code identify in an ACH Record?

• A. Type of payment
• B. Batch of Entries
• C. Transaction amount
• D. Entry point of transaction

Answer: (B)

The Originator Status Code in an ACH Record is designed to identify the batch of entries that are associated with the originator of the transaction. This code provides important information concerning the status and type of transaction group being processed. It can indicate whether the transactions are standard entries, are in a particular processing state, or belong to a specific category of transactions defined by the originator. In the context of ACH processing, the batch of entries might include various types of transactions, such as payroll deposits or bill payments, which are grouped together for processing. The Originator Status Code helps ACH operators and financial institutions to manage and recognize these batches efficiently, ensuring that transactions are handled correctly based on their categorization within the ACH network. The other options describe various components or characteristics of transactions but do not specifically relate to the purpose of the Originator Status Code. For instance, the type of payment refers to the nature of the transaction (e.g., credit or debit), the transaction amount defines the monetary value being transferred, and the entry point of the transaction pertains to how and where the transaction was initiated within the payment system.

The Originator Status Code in an ACH Record is designed to identify the batch of entries that are associated with the originator of the transaction. This code provides important information concerning the status and type of transaction group being processed. It can indicate whether the transactions are standard entries, are in a particular processing state, or belong to a specific category of transactions defined by the originator.

In the context of ACH processing, the batch of entries might include various types of transactions, such as payroll deposits or bill payments, which are grouped together for processing. The Originator Status Code helps ACH operators and financial institutions to manage and recognize these batches efficiently, ensuring that transactions are handled correctly based on their categorization within the ACH network.

The other options describe various components or characteristics of transactions but do not specifically relate to the purpose of the Originator Status Code. For instance, the type of payment refers to the nature of the transaction (e.g., credit or debit), the transaction amount defines the monetary value being transferred, and the entry point of the transaction pertains to how and where the transaction was initiated within the payment system.