What are the requirements for an ACH transaction to be valid?

The correct answer highlights the essential components needed for an ACH (Automated Clearing House) transaction to be considered valid. In order for an ACH transaction to proceed, it is crucial to have consent from all parties involved. This ensures that the transaction is authorized and prevents disputes over unauthorized transactions.

Additionally, accurate data is vital. This includes information such as the correct bank account numbers, routing numbers, and transaction details. Any inaccuracies can lead to failures in processing the transaction or misdirected payments.

Lastly, compliance with relevant regulations is a critical requirement. This encompasses adherence to rules set forth by governing bodies such as Nacha, which oversees the ACH network. Compliance includes ensuring that all parties are eligible to participate in the ACH system and that the transaction adheres to legal standards.

Collectively, these requirements safeguard both the payer and the payee, ensuring that the transaction is legitimate and can proceed without issues.