Which entity warrants that the signature is genuine on all XCK Entries?

Which entity warrants that the signature is genuine on all XCK Entries?

• A. Originator
• B. Receiver
• C. ODFI
• D. Third Party Processor

Answer: (C)

The correct answer is that the Originating Depository Financial Institution (ODFI) warrants that the signature is genuine on all XCK Entries. The ODFI plays a critical role in the ACH network as the financial institution that initiates the ACH entries. When it comes to XCK (correction) entries, the ODFI is responsible for ensuring the accuracy and validity of the signatures associated with these entries. This means that they must confirm that the signature on the transaction is authentic and has been authorized, effectively providing a guarantee to the receiving institution and any subsequent entities in the transaction chain. In the context of ACH processing, ODFIs are vital because they are the ones that establish the relationships with the originators and they have the primary responsibility for managing these entries, including ensuring that all necessary authorizations have been obtained. This does not apply to the originator, receiver, or third-party processor in the same way, as their roles pertain to different responsibilities within the transaction lifecycle.

The correct answer is that the Originating Depository Financial Institution (ODFI) warrants that the signature is genuine on all XCK Entries. The ODFI plays a critical role in the ACH network as the financial institution that initiates the ACH entries. When it comes to XCK (correction) entries, the ODFI is responsible for ensuring the accuracy and validity of the signatures associated with these entries. This means that they must confirm that the signature on the transaction is authentic and has been authorized, effectively providing a guarantee to the receiving institution and any subsequent entities in the transaction chain.

In the context of ACH processing, ODFIs are vital because they are the ones that establish the relationships with the originators and they have the primary responsibility for managing these entries, including ensuring that all necessary authorizations have been obtained. This does not apply to the originator, receiver, or third-party processor in the same way, as their roles pertain to different responsibilities within the transaction lifecycle.