NCP EXAM OPERATIONS QUESTIONS AND ANSWERS
Point of capture - CORRECT ANSWER✅✅Image ATM, Vault, lockbox, front counter, branch image
capture, back counter, image CL from an exchange partner, RDC from customers
Item capture - CORRECT ANSWER✅✅Fed and most rules require full field MICR. ECCHO, permits partial
by agreement.
Quality control - CORRECT ANSWER✅✅IQA = Image Quality Analysis - interrogates electronic items.
Also called CODE LINE MATCH: ensures that item's electronic data record (MICR information) matches
the visual representation of the orginal checks MICR line. Some issues include: too light, too dark,
streaks, excessive skew, piggyback.
Duplicate item detection - CORRECT ANSWER✅✅Item level control. True duplicates result in exception
item (may be returned or adjusted). What is the industry practice? Timing will determine. After midnight
deadline would have to adjust. If prior to midnight deadline, can return. Know operational duplicates
should be resolved as adjustments. When the cause is unknown, fraud may be involved...return would
protect legal rights of Paying Bank ("right of return")
Proof and Balancing - CORRECT ANSWER✅✅Proof = encode. Balance to deposit ticket. Encode amount
and missing MICR fields. Correct customer errors as needed, and balance the transactions.
Clearing (including ACH Conversion) - CORRECT ANSWER✅✅
Bulk File - CORRECT ANSWER✅✅filing and temporary retention system. Process occurs at end of day
after capture, balancing, and posting. Still may be required for customers with special statement
requirements.. Resort any physical items for statement rendering.
Posting - CORRECT ANSWER✅✅On us items get uploaded into internal systems while transit work gets
ready for dispatch. Part of end of day process. Send all information about items processed that day to
DDA system to attempt to post to customer accounts. Deposited credits and onus checks.
Reconcilement - CORRECT ANSWER✅✅
, Bank Settlement - CORRECT ANSWER✅✅Facilitates the exchange of FUNDS between banks for the
value of cash letters sent and received. Remember that under Reg CC you are making a warranty that all
settlement will accurately reflect the actual value of the items sent and received. Multiple presentments
and added clearing channels make reconcilement more complicated, as there could be more GLs to
reconcile...also more items to reconcile.
File Control - CORRECT ANSWER✅✅
Rejected items and files - CORRECT ANSWER✅✅Verify X9 format, control totals, check for duplicate
file. File - things to think about: is it a late file - normally you get a daily file from a partner at 2:00 and
you didn't receive a file. Maybe you normally receive one file and today you received two. Does the file
exceed the average item or dollar amount
Transmissions and acknowledgement - CORRECT ANSWER✅✅
Exception Handling - CORRECT ANSWER✅✅
Exception disposition - CORRECT ANSWER✅✅
Research - CORRECT ANSWER✅✅
Returns - CORRECT ANSWER✅✅Outgoing returns: Must identify the return and the reason for the
return. Large dollar notification. You have two clocks to concern with: UCC to get the item out by
midnight on the day after presentment and Reg CC to get the item to the depositary bank before 4:00
local on the second business day after the banking day on which the check was presented to the paying
bank.
Adjustments - CORRECT ANSWER✅✅
Retention, retrieval, destruction - CORRECT ANSWER✅✅
Point of capture - CORRECT ANSWER✅✅Image ATM, Vault, lockbox, front counter, branch image
capture, back counter, image CL from an exchange partner, RDC from customers
Item capture - CORRECT ANSWER✅✅Fed and most rules require full field MICR. ECCHO, permits partial
by agreement.
Quality control - CORRECT ANSWER✅✅IQA = Image Quality Analysis - interrogates electronic items.
Also called CODE LINE MATCH: ensures that item's electronic data record (MICR information) matches
the visual representation of the orginal checks MICR line. Some issues include: too light, too dark,
streaks, excessive skew, piggyback.
Duplicate item detection - CORRECT ANSWER✅✅Item level control. True duplicates result in exception
item (may be returned or adjusted). What is the industry practice? Timing will determine. After midnight
deadline would have to adjust. If prior to midnight deadline, can return. Know operational duplicates
should be resolved as adjustments. When the cause is unknown, fraud may be involved...return would
protect legal rights of Paying Bank ("right of return")
Proof and Balancing - CORRECT ANSWER✅✅Proof = encode. Balance to deposit ticket. Encode amount
and missing MICR fields. Correct customer errors as needed, and balance the transactions.
Clearing (including ACH Conversion) - CORRECT ANSWER✅✅
Bulk File - CORRECT ANSWER✅✅filing and temporary retention system. Process occurs at end of day
after capture, balancing, and posting. Still may be required for customers with special statement
requirements.. Resort any physical items for statement rendering.
Posting - CORRECT ANSWER✅✅On us items get uploaded into internal systems while transit work gets
ready for dispatch. Part of end of day process. Send all information about items processed that day to
DDA system to attempt to post to customer accounts. Deposited credits and onus checks.
Reconcilement - CORRECT ANSWER✅✅
, Bank Settlement - CORRECT ANSWER✅✅Facilitates the exchange of FUNDS between banks for the
value of cash letters sent and received. Remember that under Reg CC you are making a warranty that all
settlement will accurately reflect the actual value of the items sent and received. Multiple presentments
and added clearing channels make reconcilement more complicated, as there could be more GLs to
reconcile...also more items to reconcile.
File Control - CORRECT ANSWER✅✅
Rejected items and files - CORRECT ANSWER✅✅Verify X9 format, control totals, check for duplicate
file. File - things to think about: is it a late file - normally you get a daily file from a partner at 2:00 and
you didn't receive a file. Maybe you normally receive one file and today you received two. Does the file
exceed the average item or dollar amount
Transmissions and acknowledgement - CORRECT ANSWER✅✅
Exception Handling - CORRECT ANSWER✅✅
Exception disposition - CORRECT ANSWER✅✅
Research - CORRECT ANSWER✅✅
Returns - CORRECT ANSWER✅✅Outgoing returns: Must identify the return and the reason for the
return. Large dollar notification. You have two clocks to concern with: UCC to get the item out by
midnight on the day after presentment and Reg CC to get the item to the depositary bank before 4:00
local on the second business day after the banking day on which the check was presented to the paying
bank.
Adjustments - CORRECT ANSWER✅✅
Retention, retrieval, destruction - CORRECT ANSWER✅✅
