What is the Entry Hash in ACH records?

What is the Entry Hash in ACH records?

• A. Identifies the total number of entries
• B. Sums the routing and transit numbers in a batch or file
• C. Specifies the Company ID
• D. Gives the transaction amount

Answer: (B)

The Entry Hash in ACH records is a critical element that serves to uniquely identify and validate the entries within an ACH file or batch. It is calculated by summing the routing and transit numbers for each individual entry in the transaction batch. This ensures that the information can be cross-checked against the specified routing numbers, providing a method of integrity checking for the data being processed. Using the Entry Hash helps in detecting errors and verifying that the batches of transactions are intact and accurate as they are transmitted between financial institutions. This is particularly important in the ACH network, where accuracy and security are paramount. The other options presented do not accurately describe the function of the Entry Hash. Identifying the total number of entries refers to a different aspect of the ACH file structure, while specifying the Company ID and providing transaction amounts are related to different fields within the ACH record but do not represent the purpose or function of the Entry Hash itself.

The Entry Hash in ACH records is a critical element that serves to uniquely identify and validate the entries within an ACH file or batch. It is calculated by summing the routing and transit numbers for each individual entry in the transaction batch. This ensures that the information can be cross-checked against the specified routing numbers, providing a method of integrity checking for the data being processed.

Using the Entry Hash helps in detecting errors and verifying that the batches of transactions are intact and accurate as they are transmitted between financial institutions. This is particularly important in the ACH network, where accuracy and security are paramount.

The other options presented do not accurately describe the function of the Entry Hash. Identifying the total number of entries refers to a different aspect of the ACH file structure, while specifying the Company ID and providing transaction amounts are related to different fields within the ACH record but do not represent the purpose or function of the Entry Hash itself.