Under Article II of the Operating Rules, an ODFI sending an entry to an RDFI warrants, among other things, that the entry: (1) is in accordance with proper authorization provided by both the Receiver and Originator; (2) is for an amount which on the settlement date will be due and owing to the Originator from the Receiver or for a sum specified by the Receiver to be paid to the Originator; and (3) contains the correct account and routing number of the Receiver.
Article II previously included a catchall provision, which required an RDFI to indemnify an ODFI from any claim resulting from "the debiting or crediting of the entry to a receivers account.
The added qualifying language narrows the scope of claims for which an ODFI must indemnify an RDFI by limiting an ODFI's duty to indemnify to only claims that arise from an RDFI's actions that are in accordance with "the terms of the entry.
72) Moreover, financial institutions that enter into agreements with Third-Party Senders may be viewed as facilitating practices of the Third-Party Sender's clients and could potentially be liable to an RDFI whose customer reports an unauthorized transaction on his bank account.
Allaire, RDH, MDH, The Woodlands, Texas (center) with President Swanson Jaecks (left) and Rebecca Van Florn, RDFI
, BA representing Crest Oral-B
The method will be determined by agreement between the RDFI and the Receiver (e.
The ACH has an established payment and remittance capability--and capacity--and stakeholders (ODFIs, RDFIs, ACH Operators, payment processors, related vendors, etc.
To generate additional revenue from corporate payments, ODFIs and RDFIs, may provide other support services too, including translation software, programming, operations, help line, security, VAN relationship management, etc.