What is the requirement for an ODFI when the National Association requests information about an Originator's Unauthorized Return Rate?

What is the requirement for an ODFI when the National Association requests information about an Originator's Unauthorized Return Rate?

• A. Provide information via fax within five Banking Days
• B. Provide information via email within ten Banking Days
• C. Provide information via traceable delivery method within ten Banking Days
• D. Provide information via standard mail within fifteen Banking Days

Answer: (C)

The correct answer highlights the requirement for the Originating Depository Financial Institution (ODFI) to respond to requests for information about an Originator's Unauthorized Return Rate. When the National Association makes such a request, it is essential that the ODFI provides the necessary data utilizing a traceable delivery method within ten Banking Days. This requirement ensures that the information is both timely and verifiable, which is crucial for maintaining oversight and compliance within the ACH system. By using a traceable delivery method, the ODFI also guarantees that the submission can be tracked, providing proof of compliance with the request. In this context, the other options do not satisfy the standards set forth for response. Methods like standard mail or less reliable communication forms would not meet the verification standard implied by using a traceable method. Additionally, the timelines in options suggesting longer delivery periods would not comply with the urgency necessary for handling unauthorized return rates effectively.

The correct answer highlights the requirement for the Originating Depository Financial Institution (ODFI) to respond to requests for information about an Originator's Unauthorized Return Rate. When the National Association makes such a request, it is essential that the ODFI provides the necessary data utilizing a traceable delivery method within ten Banking Days.

This requirement ensures that the information is both timely and verifiable, which is crucial for maintaining oversight and compliance within the ACH system. By using a traceable delivery method, the ODFI also guarantees that the submission can be tracked, providing proof of compliance with the request.

In this context, the other options do not satisfy the standards set forth for response. Methods like standard mail or less reliable communication forms would not meet the verification standard implied by using a traceable method. Additionally, the timelines in options suggesting longer delivery periods would not comply with the urgency necessary for handling unauthorized return rates effectively.