What timeframe is established for an originator to provide a Notification of Change or corrected notification to a receiver?

What timeframe is established for an originator to provide a Notification of Change or corrected notification to a receiver?

• A. 2 banking days
• B. 5 banking days
• C. 10 banking days
• D. 7 banking days

Answer: (A)

The correct choice reflects that, according to ACH Rules, an originator is required to provide a Notification of Change (NOC) or a corrected notification to the receiver within a designated timeframe of 2 banking days. This requirement is put in place to ensure that receivers can be promptly informed about necessary updates or corrections related to their accounts after an ACH transaction. This quick communication is essential to maintain the accuracy of account information and to prevent any potential issues that could arise from outdated or incorrect data, thereby facilitating smooth transaction processing in the ACH network. This timeframe emphasizes the importance of timely communication in ACH transactions, supporting both the efficiency of operations and enhancing security in payment processing. The requirement for a short response time ensures that receivers have the most up-to-date information, which is critical for their financial management.

The correct choice reflects that, according to ACH Rules, an originator is required to provide a Notification of Change (NOC) or a corrected notification to the receiver within a designated timeframe of 2 banking days. This requirement is put in place to ensure that receivers can be promptly informed about necessary updates or corrections related to their accounts after an ACH transaction. This quick communication is essential to maintain the accuracy of account information and to prevent any potential issues that could arise from outdated or incorrect data, thereby facilitating smooth transaction processing in the ACH network.

This timeframe emphasizes the importance of timely communication in ACH transactions, supporting both the efficiency of operations and enhancing security in payment processing. The requirement for a short response time ensures that receivers have the most up-to-date information, which is critical for their financial management.