APRP Vocabulary with 170+ questions & correct answers
ACH - ANSWER-Automated Clearing House
ACH Network - ANSWER-Backbone for the electronic movement of money and
data, a processing and delivery system that provides for the distribution and
settlement among financial institutions of electronic credits and debits, as well as,
non-monetary entries with payment related information
ACH Operator - ANSWER-Central clearing facility that receives entries from the
ODFIs and distributes the entries to the appropriate Receiving Depository
Financial Institution
ACH Policy - ANSWER-Every financial institution should have this policy that
outlines the financial institution's goals and objectives for its ACH program. The
policy should have the approval of the board of directors. Some elements to be
considered or be addressed include:
• A general statement that the organization will process ACH in accordance with
U.S. law and the NACHA Operating Rules
• Compliance with NACHA Operating Rules
• Outline of the types of ACH products the FI will offer
• Any types of prohibited/restricted originators
• Internal controls practices to address the risk inherent to offering certain ACH
products
• Third Party Senders relationships should be addressed
• ACH Receipt
• ACH Origination
,• OFAC Requirements"
Addressing - ANSWER-Automated means to route/direct a transaction using a set
of data often employing a directory service.
Alternate channel confirmations - ANSWER-Process of encouraging customer
participation in fraud detection and increase customer confidence by sending
confirmations of certain high-risk activities through additional communication
channels such as the telephone, e-mail, or traditional mail
AML - ANSWER-Anti- Money Laundering-
Ancillary Risk - ANSWER-A consequence or by-product of not managing credit,
operational, fraud, systemic or compliance Risks
Android Pay - ANSWER-A digital wallet platform developed by Google to power
in-app and tap-to-pay purchases on mobile devices, enabling users to make
payments with Android phones, tablets or watches. It is an open loop system
Anomaly Detection - ANSWER-A technique that compares current behavior with
established patterns of legitimate behavior and looks for anomalies
API - ANSWER-A set of specifications, standards or conventions that enable
programs to exchange information
Apple Pay - ANSWER-A mobile payment and digital wallet service by Apple Inc.
that lets users make payments using an iPhone, Apple Watch, iPad or Mac. It is an
open loop system.
, Audit Policy - ANSWER-A financial institution's policy that should address the
following objectives, whether or not the audit functions are handled in-house or
outsourced: Policy Objective; Scope of work; Authority; Auditing standards;
Outsourcing/third parties; External auditor restriction
Authentication - ANSWER-"The explicit instructions, including: timing, amount,
payee, source of funds and other conditions, given by the payer to the payee to
transfer funds on a one-time or recurring basis"
Address Verification System (AVS) - ANSWER-Verify a cardholder's billing
address and other pertinent information, used for mail, telephone, and Internet
transactions
Basel III Regulatory Capital - ANSWER-A comprehensive set of reform measures,
developed by the Basel Committee on Banking Supervision (BCBS), to strengthen
the regulation, supervision, and risk management of the banking sector, including
both liquidity and capital reforms.
Business Continuity Planning (BCP) - ANSWER-Develop, implement, and test
appropriate disaster recovery, in order to maintain acceptable retail payment-
related customer service levels
Business Impact Analysis (BIA) - ANSWER-A flow analysis that involves an
assessment and prioritization of those business functions and processes that must
be recovered. should also consider the impact of legal and regulatory requirements.
should also estimate the maximum allowable downtime for critical business
functions and processes and the acceptable level of losses (data, operations,
financial, reputation, and market share) associated with this estimated downtime
Biometrics - ANSWER-Methods include voice scanning and iris and retinal
imagingfinger scan linked to his or her personal identification information.
ACH - ANSWER-Automated Clearing House
ACH Network - ANSWER-Backbone for the electronic movement of money and
data, a processing and delivery system that provides for the distribution and
settlement among financial institutions of electronic credits and debits, as well as,
non-monetary entries with payment related information
ACH Operator - ANSWER-Central clearing facility that receives entries from the
ODFIs and distributes the entries to the appropriate Receiving Depository
Financial Institution
ACH Policy - ANSWER-Every financial institution should have this policy that
outlines the financial institution's goals and objectives for its ACH program. The
policy should have the approval of the board of directors. Some elements to be
considered or be addressed include:
• A general statement that the organization will process ACH in accordance with
U.S. law and the NACHA Operating Rules
• Compliance with NACHA Operating Rules
• Outline of the types of ACH products the FI will offer
• Any types of prohibited/restricted originators
• Internal controls practices to address the risk inherent to offering certain ACH
products
• Third Party Senders relationships should be addressed
• ACH Receipt
• ACH Origination
,• OFAC Requirements"
Addressing - ANSWER-Automated means to route/direct a transaction using a set
of data often employing a directory service.
Alternate channel confirmations - ANSWER-Process of encouraging customer
participation in fraud detection and increase customer confidence by sending
confirmations of certain high-risk activities through additional communication
channels such as the telephone, e-mail, or traditional mail
AML - ANSWER-Anti- Money Laundering-
Ancillary Risk - ANSWER-A consequence or by-product of not managing credit,
operational, fraud, systemic or compliance Risks
Android Pay - ANSWER-A digital wallet platform developed by Google to power
in-app and tap-to-pay purchases on mobile devices, enabling users to make
payments with Android phones, tablets or watches. It is an open loop system
Anomaly Detection - ANSWER-A technique that compares current behavior with
established patterns of legitimate behavior and looks for anomalies
API - ANSWER-A set of specifications, standards or conventions that enable
programs to exchange information
Apple Pay - ANSWER-A mobile payment and digital wallet service by Apple Inc.
that lets users make payments using an iPhone, Apple Watch, iPad or Mac. It is an
open loop system.
, Audit Policy - ANSWER-A financial institution's policy that should address the
following objectives, whether or not the audit functions are handled in-house or
outsourced: Policy Objective; Scope of work; Authority; Auditing standards;
Outsourcing/third parties; External auditor restriction
Authentication - ANSWER-"The explicit instructions, including: timing, amount,
payee, source of funds and other conditions, given by the payer to the payee to
transfer funds on a one-time or recurring basis"
Address Verification System (AVS) - ANSWER-Verify a cardholder's billing
address and other pertinent information, used for mail, telephone, and Internet
transactions
Basel III Regulatory Capital - ANSWER-A comprehensive set of reform measures,
developed by the Basel Committee on Banking Supervision (BCBS), to strengthen
the regulation, supervision, and risk management of the banking sector, including
both liquidity and capital reforms.
Business Continuity Planning (BCP) - ANSWER-Develop, implement, and test
appropriate disaster recovery, in order to maintain acceptable retail payment-
related customer service levels
Business Impact Analysis (BIA) - ANSWER-A flow analysis that involves an
assessment and prioritization of those business functions and processes that must
be recovered. should also consider the impact of legal and regulatory requirements.
should also estimate the maximum allowable downtime for critical business
functions and processes and the acceptable level of losses (data, operations,
financial, reputation, and market share) associated with this estimated downtime
Biometrics - ANSWER-Methods include voice scanning and iris and retinal
imagingfinger scan linked to his or her personal identification information.
