ACH Basics: Part 1

With Rayleen Pirnie

ACH Basics: Part 1

With Rayleen Pirnie
  • 1 Video
  • 2 Downloads
  • 2.0 hrs
Course description

ICB Credit: 2.5 CRCM

This three-part webinar series provides with ACH essentials. Designed specifically for financial institutions, each session builds off the last.

Part 1 guides attendees through the life of an ACH transaction, including how ACH credits and debits are processed, and explains who the network participants are. It will also explore the involvement of third parties in the ACH Network, and the risks they present to your bank.

The program will also help attendees understand special codes called Standard Entry Class Codes (SECs) used for transactions in the ACH Network. This webinar will also discuss other laws and regulations that apply and will highlight critical processing requirements that can reduce the bank’s exposure to risk. It will also explore the most common violations for some SECs to help your bank avoid problems.

In addition to course materials, attendees will receive a free Quick Reference Guide for Standard Entry Class Codes.

Note: Have your 2017 NACHA Operating Rules and Guidelines book (aka, ACH Rules) handy! If you do not have an ACH Rules book, please contact your regional payments association, or order from www.nacha.org. The instructor will be providing page numbers for your reference throughout the program, so you might want a highlighter handy as well.

This course is recommended for bank staff who are new to ACH and those studying for the Accredited ACH Professional (AAP) Exam.

Attendees will be able to:

  • Recognize an ACH transaction flow
  • Identify ACH Network participants, including Third-Parties
  • Locate Standard Entry Class Code (transaction) Rules in the ACH Rules book
  • Record common areas of ACH rules violations
  • Define the correct SEC to use, through instructor-provided scenarios
  • Demonstrate your new knowledge by successfully completing the course exam

Agenda:

  • ACH Rules Book Basics
    • OR vs. OG
  • ACH Credit transaction flow
  • ACH Debit transaction flow
  • Review ACH Network Participants
  • Identify Third-Parties that can be involved in a transaction
    • Locate appropriate resources in the ACH Rules Book
    • Third-Party Sender vs. Third-Party Service Provider - what's the difference?
    • Managing risk through strong service contracts
  • Rules and Regulations governing ACH Transactions
  • Locate appropriate resources in the ACH Rules Book
  • Define, provide examples of, and discuss ACH Standard Entry Class Codes. Discussion to include unique requirements, risks, applicable laws/regs, and common violations of the Rules.
    • Automated Accounting Advice - ADV
    • Accounts Receivable Check - ARC
    • Acknowledgements - ACK, ATX
    • Back Office Conversion - BOC
    • Customer-Initiated Entries - CIE
    • Corporate Credit or Debit - CCD
    • Correction (NOC) - COR
    • Corporate Trade Exchange - CTX
    • Death Notification Entry - DNE
    • Automated Enrollment Entries - ENR
    • International ACH Transaction - IAT
      • Include IAT resources
    • Machine Transfer Entry - MTE
    • Point of Purchase Entry - POP
    • Point of Sale Entry, Shared - POS, SHR
    • Prearranged Payment and Deposit Entry - PPD
    • Represented Check Entry - RCK
    • Telephone Initiated Entry - TEL
    • Truncated Checks - TRC and TRX
    • Internet Initiated Entry - WEB
    • Destroyed Check Entries - XCK
  • Scenarios
  • Course Exam

Who Should Attend:
This informative session is designed for anyone in the institution who is new to the ACH Network including Operations, Auditors, and those responsible for ACH Compliance. It's also a great basics course for those studying for the Accredited ACH Professional (AAP) Exam.

Course Curriculum

Video
121:11
ACH Basics: Part 1
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Materials
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Questions and Answers
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Instructor

Rayleen Pirnie
Rayleen Pirnie

Rayleen is the founder and owner of RP Payments Risk Consulting Services, LLC. based in Missouri. She is a nationally recognized payments risk and fraud expert. Her programs educate financial institutions and businesses on topics ranging from payments fraud to information security. She is the author of several payments risk and fraud blogs geared toward helping organizations recognize threats and protect themselves from loss.

Always interested in Risk Management, Rayleen has supported many notable organizations over the years. She is a member of the International Association of Financial Crimes Investigators, supporting their training programs since 1998. She sat on NACHA’s Risk Management Advisory group for two terms, and assisted with FSISAC’s first CAPP exercise.

For 16 years Rayleen has spoken at national and regional conferences. Recent events include NACHAs Payments Conference, the American Bankers Association Risk Management Forum, the Security Matters annual conference at Murray State University, the Risk Management Association, and the Federal Reserve Bank of Kansas City Risk Management Conference.

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