What type of payment stop must the RDFI return within a specified timeframe?

What type of payment stop must the RDFI return within a specified timeframe?

• A. Insufficient Funds
• B. Payment Stopped
• C. Check Not Authenticated
• D. Account Closed

Answer: (B)

The correct answer, which pertains to the type of payment stop that the Receiving Depository Financial Institution (RDFI) must return within a specified timeframe, is related to "Payment Stopped." In the context of ACH transactions, when a consumer initiates a stop payment request on a pre-authorized debit entry, the RDFI is required to act on this request in a timely manner. The ACH rules mandate that when a consumer notifies their bank to stop payment on an ACH transaction, the RDFI must return this entry within a specified timeframe, which is generally within two banking days after the request is made or before the next processing date of the transaction. This ensures that the consumer has control over their account and can prevent unauthorized debits. Other options, such as "Insufficient Funds," "Check Not Authenticated," and "Account Closed," are valid reasons for the return of ACH entries, but they do not relate specifically to a stop payment request initiated by the consumer. For instance, insufficient funds indicate that there are not enough funds available to cover a transaction, rather than a choice made by the account holder to stop the transaction itself. Similarly, an account being closed or a check not being authenticated are also reasons for returns but do not involve

The correct answer, which pertains to the type of payment stop that the Receiving Depository Financial Institution (RDFI) must return within a specified timeframe, is related to "Payment Stopped." In the context of ACH transactions, when a consumer initiates a stop payment request on a pre-authorized debit entry, the RDFI is required to act on this request in a timely manner.

The ACH rules mandate that when a consumer notifies their bank to stop payment on an ACH transaction, the RDFI must return this entry within a specified timeframe, which is generally within two banking days after the request is made or before the next processing date of the transaction. This ensures that the consumer has control over their account and can prevent unauthorized debits.

Other options, such as "Insufficient Funds," "Check Not Authenticated," and "Account Closed," are valid reasons for the return of ACH entries, but they do not relate specifically to a stop payment request initiated by the consumer. For instance, insufficient funds indicate that there are not enough funds available to cover a transaction, rather than a choice made by the account holder to stop the transaction itself. Similarly, an account being closed or a check not being authenticated are also reasons for returns but do not involve