ACH AAP Study Guide Questions With
Correct Answers
Reason code used by RDFI when the source document for an ARC has been
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presented for payment - CORRECT ANSWER✔✔-R37
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How many times can ODFI reinitiate a POP transaction when it is returned for
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either R01(insufficient funds) or R09 (uncollected funds) - CORRECT ANSWER✔✔-
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2 times
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What can RDFI do with an entry that does not post? - CORRECT ANSWER✔✔-1.
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Manually post the entry | | |
2. Manually post the entry and initiate a Notification of Change (NOC)
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3. Return the entry
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NOT a field minimally included in the File Acknowledgment Entry from the ACH
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Operator for each file that was not rejected by the ACH Operator - CORRECT
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ANSWER✔✔-Settlement Date |
What must be included by the ODFI or the file will be rejected by the ACH
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Operator - CORRECT ANSWER✔✔-A required field
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Standard Entry Class codes that can be used for non-monetary payments -
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CORRECT ANSWER✔✔-CTX (corporate trade entry)
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,CCD (corporate credit or debit entry)
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Credit only application, associated with home banking - CORRECT ANSWER✔✔-
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CIE (Customer Initiated Entry)
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Acknowledgment of receipt of a corporate credit payment originated using the
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CTX format - CORRECT ANSWER✔✔-ATX (Financial EDI Acknowledgement)
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Debit entry initiated at an electronic terminal as defined by Reg E to effect a
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transfer of funds from a consumer account to pay an obligation incurred in a
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point of sale transaction - CORRECT ANSWER✔✔-POS (Point of Sale)
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Debit or credit Entr to transfer funds to or from the consumers account, initiated
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at an electronic terminal as defined by Reg E - CORRECT ANSWER✔✔-MTE
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(Machine Transfer Entry) | |
Legislation that encouraged private sector ACH Operators to compete with the
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Federal Reserve - CORRECT ANSWER✔✔-The Monetary Control Act of 1980
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According to Reg E, what best describes the following: "unauthorized EFT" -
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CORRECT ANSWER✔✔-"Initiated by a person other than the consumer, without
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actual authority to initiate such transfer from which the consumer receives no
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benefit
NOC is to provide the correct data to an Originator so they can change what -
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CORRECT ANSWER✔✔-The Routing number | | |
, To initiate an Arbitration proceeding between DFIs, a compliant must contain
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what items - CORRECT ANSWER✔✔-1. Statement of damages
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2. Summary of facts
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3. Application fee
| |
Advantages of using ACH for collection of destroyed or lost checks - CORRECT
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ANSWER✔✔-1. Reduced costs | |
2. Acceleration of the recovery process
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3. Reduction of potential losses due to delays in presentment
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In the reclamation process, when does RDFI have knowledge of the death of a
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recipient - CORRECT ANSWER✔✔-when a Financial Institution employee who
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handles benefit payments is informed or made aware, or when it would have
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been brought to the employee's attention
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**Receipt of DNE is not required | | | | |
What code designates whether an item has been originated by the Federal
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Government - CORRECT ANSWER✔✔-Originator Status Code | | | | |
What addresses the collection of checks by the Federal Reserve System -
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CORRECT ANSWER✔✔-Reg J | |
Drawn on a consumer account, is not created by the payor bank and does not
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include a drawer signature - CORRECT ANSWER✔✔-Remotely created check
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Correct Answers
Reason code used by RDFI when the source document for an ARC has been
| | | | | | | | | | | | | |
presented for payment - CORRECT ANSWER✔✔-R37
| | | | |
How many times can ODFI reinitiate a POP transaction when it is returned for
| | | | | | | | | | | | | |
either R01(insufficient funds) or R09 (uncollected funds) - CORRECT ANSWER✔✔-
| | | | | | | | |
2 times
|
What can RDFI do with an entry that does not post? - CORRECT ANSWER✔✔-1.
| | | | | | | | | | | | | |
Manually post the entry | | |
2. Manually post the entry and initiate a Notification of Change (NOC)
| | | | | | | | | | |
3. Return the entry
| | |
NOT a field minimally included in the File Acknowledgment Entry from the ACH
| | | | | | | | | | | | |
Operator for each file that was not rejected by the ACH Operator - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-Settlement Date |
What must be included by the ODFI or the file will be rejected by the ACH
| | | | | | | | | | | | | | | |
Operator - CORRECT ANSWER✔✔-A required field
| | | | |
Standard Entry Class codes that can be used for non-monetary payments -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-CTX (corporate trade entry)
| | | |
,CCD (corporate credit or debit entry)
| | | | |
Credit only application, associated with home banking - CORRECT ANSWER✔✔-
| | | | | | | | |
CIE (Customer Initiated Entry)
| | |
Acknowledgment of receipt of a corporate credit payment originated using the
| | | | | | | | | | |
CTX format - CORRECT ANSWER✔✔-ATX (Financial EDI Acknowledgement)
| | | | | | |
Debit entry initiated at an electronic terminal as defined by Reg E to effect a
| | | | | | | | | | | | | | |
transfer of funds from a consumer account to pay an obligation incurred in a
| | | | | | | | | | | | | |
point of sale transaction - CORRECT ANSWER✔✔-POS (Point of Sale)
| | | | | | | | |
Debit or credit Entr to transfer funds to or from the consumers account, initiated
| | | | | | | | | | | | | |
at an electronic terminal as defined by Reg E - CORRECT ANSWER✔✔-MTE
| | | | | | | | | | | |
(Machine Transfer Entry) | |
Legislation that encouraged private sector ACH Operators to compete with the
| | | | | | | | | | |
Federal Reserve - CORRECT ANSWER✔✔-The Monetary Control Act of 1980
| | | | | | | | |
According to Reg E, what best describes the following: "unauthorized EFT" -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-"Initiated by a person other than the consumer, without
| | | | | | | | | |
actual authority to initiate such transfer from which the consumer receives no
| | | | | | | | | | | |
benefit
NOC is to provide the correct data to an Originator so they can change what -
| | | | | | | | | | | | | | | |
CORRECT ANSWER✔✔-The Routing number | | |
, To initiate an Arbitration proceeding between DFIs, a compliant must contain
| | | | | | | | | | |
what items - CORRECT ANSWER✔✔-1. Statement of damages
| | | | | | |
2. Summary of facts
| | |
3. Application fee
| |
Advantages of using ACH for collection of destroyed or lost checks - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-1. Reduced costs | |
2. Acceleration of the recovery process
| | | | |
3. Reduction of potential losses due to delays in presentment
| | | | | | | | |
In the reclamation process, when does RDFI have knowledge of the death of a
| | | | | | | | | | | | | |
recipient - CORRECT ANSWER✔✔-when a Financial Institution employee who
| | | | | | | | |
handles benefit payments is informed or made aware, or when it would have
| | | | | | | | | | | | |
been brought to the employee's attention
| | | | |
**Receipt of DNE is not required | | | | |
What code designates whether an item has been originated by the Federal
| | | | | | | | | | | |
Government - CORRECT ANSWER✔✔-Originator Status Code | | | | |
What addresses the collection of checks by the Federal Reserve System -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-Reg J | |
Drawn on a consumer account, is not created by the payor bank and does not
| | | | | | | | | | | | | | |
include a drawer signature - CORRECT ANSWER✔✔-Remotely created check
| | | | | | | |
