What is the term for a natural person or organization authorized to initiate an ACH Entry to its account with the RDFI?

• A. Sender
• B. Receiver
• C. Originator
• D. Transmitter

Answer: (C)

The term that accurately describes a natural person or organization authorized to initiate an ACH Entry to its account with the Receiving Depository Financial Institution (RDFI) is "Originator." In the context of ACH transactions, the Originator is the party that creates the ACH entry and submits it to the financial institution to initiate a debit or credit to a consumer or other organization's account. This is a vital role in the ACH network, as the Originator initiates the transaction that ultimately moves funds from one account to another.

Understanding this term is crucial for professionals in the ACH industry because it establishes who has the authority to start a transaction. By identifying the Originator, financial institutions can ensure that proper permissions and agreements are in place, which is key to compliance with NACHA rules and regulations.