What information can an RDFI rely on to post an Entry to a Receiver's account?

What information can an RDFI rely on to post an Entry to a Receiver's account?

• A. Destination address
• B. Account number
• C. Receiver's name
• D. Transaction reference number

Answer: (B)

The ability of a Receiving Depository Financial Institution (RDFI) to accurately post an Entry to a Receiver's account largely depends on the account number provided in the transaction. The account number is a unique identifier linked to a specific individual’s or entity's account within the financial institution, allowing the RDFI to ensure that the funds are directed to the correct destination without ambiguity. While other pieces of information, such as the receiver's name or destination address, may assist in verifying the entry, they are not definitive for posting the transaction to the right account. The account number is the primary data point utilized in the Automated Clearing House (ACH) network to facilitate these transactions. It is critical for preventing misapplication of funds and ensuring the integrity of the transaction process. Therefore, the account number stands out as the essential piece of information an RDFI relies on to accurately post an Entry.

The ability of a Receiving Depository Financial Institution (RDFI) to accurately post an Entry to a Receiver's account largely depends on the account number provided in the transaction. The account number is a unique identifier linked to a specific individual’s or entity's account within the financial institution, allowing the RDFI to ensure that the funds are directed to the correct destination without ambiguity.

While other pieces of information, such as the receiver's name or destination address, may assist in verifying the entry, they are not definitive for posting the transaction to the right account. The account number is the primary data point utilized in the Automated Clearing House (ACH) network to facilitate these transactions. It is critical for preventing misapplication of funds and ensuring the integrity of the transaction process. Therefore, the account number stands out as the essential piece of information an RDFI relies on to accurately post an Entry.