What must each Originator verify when originating WEB Debit Entries?

What must each Originator verify when originating WEB Debit Entries?

• A. Receiver's address
• B. Receiver's routing number
• C. Receiver's phone number
• D. Receiver's payment method

Answer: (B)

When originating WEB Debit Entries, it is essential for the Originator to verify the receiver's routing number. This is a crucial step because the routing number identifies the financial institution where the receiver holds their account. Accurate routing information ensures that the debit entry is directed to the correct bank for processing, reducing the risk of errors and unauthorized transactions. Verifying the routing number also aligns with the requirements set forth by NACHA (National Automated Clearing House Association) for electronic payments. It helps safeguard the integrity of the payment system and protects all parties involved in the transaction. The other options, while potentially relevant to the transaction process, do not hold the same critical importance as the routing number. For instance, the receiver's address and phone number may be useful for communication or verification purposes but are not mandatory for processing ACH transactions. The receiver's payment method is also not relevant to the ACH process, as it pertains more to the nature of the transaction rather than the essential routing and account information needed for proper processing in the ACH network.

When originating WEB Debit Entries, it is essential for the Originator to verify the receiver's routing number. This is a crucial step because the routing number identifies the financial institution where the receiver holds their account. Accurate routing information ensures that the debit entry is directed to the correct bank for processing, reducing the risk of errors and unauthorized transactions.

Verifying the routing number also aligns with the requirements set forth by NACHA (National Automated Clearing House Association) for electronic payments. It helps safeguard the integrity of the payment system and protects all parties involved in the transaction.

The other options, while potentially relevant to the transaction process, do not hold the same critical importance as the routing number. For instance, the receiver's address and phone number may be useful for communication or verification purposes but are not mandatory for processing ACH transactions. The receiver's payment method is also not relevant to the ACH process, as it pertains more to the nature of the transaction rather than the essential routing and account information needed for proper processing in the ACH network.