• Home
• About
• Care
• Solutions
• Resources
• Contact

Call Us Toll Free Today! 1.866.477.2432

• A
• B
• C
• D
• E
• F
• H
• I
• L
• M
• N
• O
• P
• R
• S
• T
• U
• V
• W

Pre-notification (Pre-note)

A preliminary, zero dollar item used to initiate an ACH transaction

RCK

Re-presented check entry.

Receiver

An individual, corporation or other entity that has authorized a company or an originator to initiate a credit or debit entry to a transaction account held at an RDFI.

Receiving Depository Financial Institution

A financial institution, which receives ACH entries directly or indirectly from its ACH operator.

Regulation CC

The regulation by the Federal Reserve Bank to implement the law, which mandates the time limits for funds availability on, deposited items.

Regulation E

The regulation published by the Federal Reserve Bank to implement the Electronic Fund Transfer Act mandating consumer rights and obligation with regard to electronic fund transfers.

Rejects

Any ACH batch file that has not been accepted by an ACH Operator because it cannot be processed, usually because of a technical error.

Reserve Requirement

A portion of a bank's funds that must be in the form of cash or readily available securities for the protection of depositors. Reserve or clearing balances are used to effect settlement between financial institutions.

Return Item

Any item, which cannot be processed and is being returned by the RDFI to the ODFI for correction or re-initiation.

Reversal

Any ACH entries or files sent within required deadlines to “correct” or reverse previously originated entries or files.

Routing/Transit Number

Also known as Routing Number, Transit/Routing Number and ABA number. A nine-digit number (eight digits plus a check digit) which identifies a specific financial institution. Routing numbers are administered by the Routing Number Administrative Board under the sponsorship of the American Bankers Association and officially maintained and published by Thomson Financial Publishing.

SCAN

Shared Check Authorization Network.

SEC (Standard Entry Class) codes

The three-character code within an ACH company/batch header, which identifies the type of transactions within that batch (e.g. CCD, CTX, PPS, etc.).

Settlement Date

The date on which an exchange of funds with respect to an entry is reflected on the books of the Federal Reserve Bank(s).

SSL

Uses a cryptographic system that uses two keys to encrypt data − a public key known to everyone and a private or secret key known only to the recipient of the message. Both Netscape Navigator and Internet Explorer support SSL and many Websites use the protocol to obtain confidential user information, such as credit card numbers.

Third Party Processor

A party, which processes ACH files and or items on behalf of one of the participants in the ACH system. Examples of third party processors are payroll processing companies which create ACH files for transmission to the ACH Operator on behalf of an Originator or ODFI, a data processing company which receives incoming ACH files and processes them for an RDFI, or a correspondent bank which processes ACH files for its correspondent. Under the ACH rules, third party processors are essentially invisible; the party they are processing for bears virtually all of the liability and risk for their third party processor's actions.

Transaction Risk

The possibility that a loss will be sustained due to the incorrect transfer on funds. Transaction risk usually arises when a large dollar transaction is treated as if it were a small dollar transaction without transferring all the procedures and security associated with the large dollar transaction to the small dollar system. An example of this would be a transaction that would normally be processed as a wire transfer, with all of the normal associated security procedures for wire transfers, converting to an ACH transaction without having the same security procedures in place.

TRC (Truncated Check Entry)

An entry that originally represented a check, in which the actual check is safe, kept by one of the financial institutions in the chain of deposit and the MICR information is converted to an electronic entry and processed through the ACH network back to the issuing institution. These items carry the Standard Entry Class code TRC.

TRX (Truncated Extended Check Entry)

A series of TRC entries put together as addenda records with the payment item representing the total settlement of the TRC entries for that batch.

UCC

Is one of the uniform acts that has been publicized in attempts to harmonize the law of sales and other commercial transactions in 49 states (all except Louisiana) within the United States.

Unauthorized

An ACH item is “unauthorized” if it was never originally authorized, if it clears for more than was originally authorized, or if it settles earlier than was previously authorized.

Uniform Commercial Code Article 4A

The portion of the Uniform Commercial Code which deals with certain funds transfers, including ACH credit transactions not subject to the Electronic Fund Transfer Act of Regulation E. This law outlines the protections and responsibilities given to the parties to wholesale credit transactions, and sets the legal standard for commercially reasonable security procedures to be used in conjunction with those transactions.

United States Code

The compilation of the general and permanent laws of the United States. Citations to the United States Code look like “15 USC 1693” which is read as “Title 15 of the United States Code, Section 1693.”

Variable Length Field

A data segment within an electronic message with a variable length, offset from other data segments by the use of delimiters.

Warehouse

“Storage” of pending files until release or settlement date.

[return]

<< Start < Previous Page 1 2 3 4 5 Next Page > End >>