FedACH Risk® Origination Monitoring Service Frequently Asked Questions
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ACH Risk and the FedACH Risk Origination Monitoring Service
- What types of risks are associated with originating ACH transactions?
Because ODFIs are responsible for settling payments originated into the ACH network using their RTN, they may be exposed to three primary types of risks:
- Operational – Human error or computer mishap that may delay or alter an ACH transaction
- Credit – An ACH originator may not have the necessary funds on the settlement date
- Fraud – Dishonest or criminal attempts may be made to misappropriate funds
- Where can I find more information on ACH risk and the FedACH Risk Origination Monitoring Service?
Visit the FedACH Risk Management Service Offerings.
Additional information on ACH risk can also be found on Nacha's website (Off-site) or via your Payments Association (Off-site).
- What are the prerequisites for the FedACH Risk Origination Monitoring Service?
Because the service is available via FedLine, ODFIs will need to subscribe to the FedLine Web or FedLine Advantage Solutions. Relationship managers can assist ODFIs in adding these services. Sign-up information can also be found on the FedACH Service setup page.
- How do I sign up for the FedACH Risk Origination Monitoring Service?
ODFIs will need to submit Part 6B (PDF) of the FedACH Participation Agreement and add the appropriate Subscriber access level(s). Sign-up information can also be found on FedACH Service Setup page.
Part 6B must be signed by a person listed on the institution's Official Authorization List as having signatory authority. The ODFI's End User Authorization Contact (EUAC) will request Subscriber access.
- Is there any reason for submitting Subscriber forms or the Participation Agreement first?
An ODFI planning to use Monitor Companies (previously Company ID Inclusive) will experience a smoother transition by first submitting its request for an appropriate Subscriber role(s). This procedure will allow for the setting of monitoring criteria before the FedACH Risk Origination Monitoring Service begins monitoring ACH activity. If an ODFI simultaneously gains access to its Subscriber role and the service, that ODFI may need to release or reject pended batches while still entering monitoring criteria.
- What are the costs associated with the service?
Please refer to the FedACH Services Fee Schedule for the current fees associated with the FedACH Risk Origination Monitoring Service.
- When is billing activated for the service?
Billing will begin during the first month of access to the service. The ODFI determines the effective date for the service.
- Is email notification the only way an ODFI will know if monitored batches have pended or rejected?
ODFIs can proactively track monitored batches via FedLine. ODFIs should not rely on email as the only source of notification in case of delays or interruptions in email service at the Federal Reserve Banks or the ODFI.
- If an ODFI has a credential/token for multiple RTNs and monitors multiple RTNs via the FedACH Risk Origination Monitoring Service, how will that ODFI distinguish among RTNs when receiving email notifications of pended batches?
The subject line of the email notifications includes the RTN to which it applies.
- Are there any limitations to the values that can be entered for credit and debit caps?
Acceptable values range from $0 to $9,999,999,999,999. If the value field is $0, all debits and/or credits will be pended by the service for further review. If the value field is left empty, no cap will be applied by the service.