APRP-EXAM 275 QUESTIONS WITH
COMPLETE SOLUTIONS
GRADED A+
QUESTIONS AND ANSWERS
1972. ANSWER - Year Calwestern Automated Clearing House Association (CACHA) was
formed.
1974. ANSWER - Year National Automated Clearing House Association was formed.
1978. ANSWER - Federal Reserve System, Local ACHs were linked electronically on a
nationwide basis in what year?
Federal Reserve Bank (FRB) & The Clearing House (TCH). ANSWER - What are the two
ACH Operators?
Monetary Control ACT in 1980. ANSWER - Encouraged private sector ACH Operators to
compete with the Federal Reserve, which could no longer it's services free of charge.
Originator (Originating Company or Individual). ANSWER - Natural person or an
organization that has authorized an ODFI to transmit, for the account of that person, a
credit, debit or nonmonetary entry to the Receiver's account
Originating Depository Financial Institution (ODFI). ANSWER - Institution that receives
payment instructions from Originators or Third-Party Senders, and transmits the ACH
entries directly or indirectly to the ACH Operator.
ACH Operator. ANSWER - Central facility for the clearing, delivery and settlement of
entries between or among participating Depository Financial Institutions (DFIs)
Receiving Depository Financial Institution. ANSWER - Depository Financial Institution
(DFI) that receives ACH entries from the ACH Operator and post the entries to the
accounts of it's depositors (Receivers).
,Receiver. ANSWER - Natural person or an Organization that has authorized an Originator
to initiate an ACH entry to their account.
Sending Point. ANSWER - An organization that transmits entries to an ACH Operator on
behalf of an ODFI.
Receiving Point. ANSWER - An RDFI itself, Participating DFI, or designated Third Party
Service Provider that has entered into an agreement to receive ACH files for the RDFI.
Third-Party Service Provider. ANSWER - An organization that performs any function of
ACH processing of entries on behalf of the Originator, Third-Party Sender, ODFI or the
RDFI for such entries.
Third Party Sender. ANSWER - An organization that acts as an intermediary in
transmitting entries between the Originator and the ODFI, including Direct Access, and
acts on behalf of an Originator or another Third-Party. (There is no contractual agreement
directly between the Originator and the ODFI)
ACH Credit. ANSWER - Type of entry that occurs when an Originator initiates a transfer
to move funds into a Receiver's account.
ACH Debit. ANSWER - Type of entry were funds are collected from a Receiver's account
and transferred to an Originator's account.
On-Us Entry. ANSWER - Type of entry in which the originating and receiving accounts
are both at the same financial institution.
Same Day ACH. ANSWER - Enable the option for same-day ACH payments through the
ACH Network, without affecting existing ACH schedules and capabilities.
1st Window: 10:30 AM submission - 1 PM settlement
2nd Window: 2:45 PM submission - 5 PM settlement
3rd Window: 4:45 submission - 6 PM settlement. ANSWER - What are the three Same Day
ACH transmission and corresponding settlement deadlines. (Eastern Time)
, International Transactions (IATs) and High-Value Transactions (greater than $100k as of
March 20, 2020). ANSWER - Two types of entries not eligible for Same Day ACH.
The Green Book. ANSWER - A procedural manual for Federal Government ACH
Payments
Credit, Debit and Prepaid Cards. ANSWER - 3 main types of payment cards
Credit Cards. ANSWER - Payment Cards that offers short-term lines of credit to
consumers and business users.
Single-Message Transaction (Online). ANSWER - Card transaction authenticated with a
Personal Identification Number (PIN) where both authorization and clearing take place
through one message from a merchant's card acceptance terminal.
Dual-Message Transaction (Offline). ANSWER - Card transaction authenticated with a
Signature where the merchant first transmits a message at the time of purchase containing
the information required for an authorization decision from the card association and a
second message is sent later that contains data required for the clearing and settlement.
Credit and Charge Cards. ANSWER - Types of cards issued by a financial institution linked
to a line of credit, usually under license by one of the major payment networks such as
Mastercard, Visa, American Express, JCB and Discover.
Charge Card. ANSWER - Type of card that requires full repayment of the balance each
month.
Credit Card. ANSWER - Type of card that offers "revolving credit" that may be repaid over
a period of time.
Debit Card. ANSWER - Type of card issued by a financial institution and is linked to a
business or personal bank (checking) account.
Prepaid Debit Card. ANSWER - Type of card issued by nearly any type of business or
organization are not linked to an individual bank account, and require funds to be added to
prior to use.
COMPLETE SOLUTIONS
GRADED A+
QUESTIONS AND ANSWERS
1972. ANSWER - Year Calwestern Automated Clearing House Association (CACHA) was
formed.
1974. ANSWER - Year National Automated Clearing House Association was formed.
1978. ANSWER - Federal Reserve System, Local ACHs were linked electronically on a
nationwide basis in what year?
Federal Reserve Bank (FRB) & The Clearing House (TCH). ANSWER - What are the two
ACH Operators?
Monetary Control ACT in 1980. ANSWER - Encouraged private sector ACH Operators to
compete with the Federal Reserve, which could no longer it's services free of charge.
Originator (Originating Company or Individual). ANSWER - Natural person or an
organization that has authorized an ODFI to transmit, for the account of that person, a
credit, debit or nonmonetary entry to the Receiver's account
Originating Depository Financial Institution (ODFI). ANSWER - Institution that receives
payment instructions from Originators or Third-Party Senders, and transmits the ACH
entries directly or indirectly to the ACH Operator.
ACH Operator. ANSWER - Central facility for the clearing, delivery and settlement of
entries between or among participating Depository Financial Institutions (DFIs)
Receiving Depository Financial Institution. ANSWER - Depository Financial Institution
(DFI) that receives ACH entries from the ACH Operator and post the entries to the
accounts of it's depositors (Receivers).
,Receiver. ANSWER - Natural person or an Organization that has authorized an Originator
to initiate an ACH entry to their account.
Sending Point. ANSWER - An organization that transmits entries to an ACH Operator on
behalf of an ODFI.
Receiving Point. ANSWER - An RDFI itself, Participating DFI, or designated Third Party
Service Provider that has entered into an agreement to receive ACH files for the RDFI.
Third-Party Service Provider. ANSWER - An organization that performs any function of
ACH processing of entries on behalf of the Originator, Third-Party Sender, ODFI or the
RDFI for such entries.
Third Party Sender. ANSWER - An organization that acts as an intermediary in
transmitting entries between the Originator and the ODFI, including Direct Access, and
acts on behalf of an Originator or another Third-Party. (There is no contractual agreement
directly between the Originator and the ODFI)
ACH Credit. ANSWER - Type of entry that occurs when an Originator initiates a transfer
to move funds into a Receiver's account.
ACH Debit. ANSWER - Type of entry were funds are collected from a Receiver's account
and transferred to an Originator's account.
On-Us Entry. ANSWER - Type of entry in which the originating and receiving accounts
are both at the same financial institution.
Same Day ACH. ANSWER - Enable the option for same-day ACH payments through the
ACH Network, without affecting existing ACH schedules and capabilities.
1st Window: 10:30 AM submission - 1 PM settlement
2nd Window: 2:45 PM submission - 5 PM settlement
3rd Window: 4:45 submission - 6 PM settlement. ANSWER - What are the three Same Day
ACH transmission and corresponding settlement deadlines. (Eastern Time)
, International Transactions (IATs) and High-Value Transactions (greater than $100k as of
March 20, 2020). ANSWER - Two types of entries not eligible for Same Day ACH.
The Green Book. ANSWER - A procedural manual for Federal Government ACH
Payments
Credit, Debit and Prepaid Cards. ANSWER - 3 main types of payment cards
Credit Cards. ANSWER - Payment Cards that offers short-term lines of credit to
consumers and business users.
Single-Message Transaction (Online). ANSWER - Card transaction authenticated with a
Personal Identification Number (PIN) where both authorization and clearing take place
through one message from a merchant's card acceptance terminal.
Dual-Message Transaction (Offline). ANSWER - Card transaction authenticated with a
Signature where the merchant first transmits a message at the time of purchase containing
the information required for an authorization decision from the card association and a
second message is sent later that contains data required for the clearing and settlement.
Credit and Charge Cards. ANSWER - Types of cards issued by a financial institution linked
to a line of credit, usually under license by one of the major payment networks such as
Mastercard, Visa, American Express, JCB and Discover.
Charge Card. ANSWER - Type of card that requires full repayment of the balance each
month.
Credit Card. ANSWER - Type of card that offers "revolving credit" that may be repaid over
a period of time.
Debit Card. ANSWER - Type of card issued by a financial institution and is linked to a
business or personal bank (checking) account.
Prepaid Debit Card. ANSWER - Type of card issued by nearly any type of business or
organization are not linked to an individual bank account, and require funds to be added to
prior to use.
