What is a key characteristic of the Effective Entry Date?

The Effective Entry Date is crucial in the context of electronic transactions because it signifies when the originator requests the transaction to be posted to the recipient’s accounts. This date essentially informs all parties involved of the intended timeline for processing a payment, allowing for proper scheduling and management of cash flows.

When the originator specifies this date, it establishes a clear understanding of when funds should be made available or debited from accounts, which helps in coordinating financial activities. As a result, the Effective Entry Date serves not only as a planning tool but also as a key component in the electronic payment system that supports accurate transaction timelines.

The other answers, which touch on bank processing schedules, transaction processing dates, and cardholder notifications, do not capture the specific role and definition of the Effective Entry Date as accurately as the option about its request by the originator.