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NCP EXAM Operations Questions with Detailed Verified
Answers
Point of capture Ans: ✓ ✓ ✓ Image ATM, Vault, lockbox, front counter, branch image capture, back
counter, image CL from an exchange partner, RDC from customers
Item capture Ans: ✓ ✓ ✓ Fed and most rules require full field MICR. ECCHO, permits partial by
agreement.
Quality control Ans: ✓ ✓ ✓ 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 Ans: ✓ ✓ ✓ 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 Ans: ✓ ✓ ✓ Proof = encode. Balance to deposit ticket. Encode amount and
missing MICR fields. Correct customer errors as needed, and balance the transactions.
Bulk File Ans: ✓ ✓ ✓ 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 Ans: ✓ ✓ ✓ 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.
Bank Settlement Ans: ✓ ✓ ✓ 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
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presentments and added clearing channels make reconcilement more complicated, as there could
be more GLs to reconcile...also more items to reconcile.
Rejected items and files Ans: ✓ ✓ ✓ 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
Returns Ans: ✓ ✓ ✓ 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.
Account Statements Ans: ✓ ✓ ✓ 1) safekeeping (check number and dollar amount). 2) enclosure
statement (physical paper and other enclosures. 3) online statements and 4) image statements
(images of paid items)
X9.100-140 From Reg CC Ans: ✓ ✓ ✓ Substitute check standard = Annexes A,B, and C are
normative and considered a part of the standard. A = Return Reason Codes, B = Check or IRD
Conversion, C = Conversion table
X9.100-160 Ans: ✓ ✓ ✓ MICR Standard with two parts 1) placement and location and 2) EPC field
such as "2, 4, 5"
X9.100-187 Ans: ✓ ✓ ✓ Image exchange standard. Cash letter structure that supports the
exchange of posting data only, posting data and check images, posting data followed by additional
data and image file. Utilizes UCD as a guideline for industry consistency. Standard has a variable
record format.
Presentment Ans: ✓ ✓ ✓ Starts two processes: 1) return clocks (UCC and Reg CC) 2) once
presentment occurs, paying bank can charge customer's account
Clearing Ans: ✓ ✓ ✓ exchange of payment instruction data between Fis
Settlement Ans: ✓ ✓ ✓ exchange of value between Fis for payment
Gross settlement Ans: ✓ ✓ ✓ one payment (Wire)
Net settlement Ans: ✓ ✓ ✓ multiple payments (checks and ACH)
© Get it right 2025 Getaway - Stuvia US All rights reserved
NCP EXAM Operations Questions with Detailed Verified
Answers
Point of capture Ans: ✓ ✓ ✓ Image ATM, Vault, lockbox, front counter, branch image capture, back
counter, image CL from an exchange partner, RDC from customers
Item capture Ans: ✓ ✓ ✓ Fed and most rules require full field MICR. ECCHO, permits partial by
agreement.
Quality control Ans: ✓ ✓ ✓ 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 Ans: ✓ ✓ ✓ 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 Ans: ✓ ✓ ✓ Proof = encode. Balance to deposit ticket. Encode amount and
missing MICR fields. Correct customer errors as needed, and balance the transactions.
Bulk File Ans: ✓ ✓ ✓ 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 Ans: ✓ ✓ ✓ 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.
Bank Settlement Ans: ✓ ✓ ✓ 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
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
presentments and added clearing channels make reconcilement more complicated, as there could
be more GLs to reconcile...also more items to reconcile.
Rejected items and files Ans: ✓ ✓ ✓ 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
Returns Ans: ✓ ✓ ✓ 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.
Account Statements Ans: ✓ ✓ ✓ 1) safekeeping (check number and dollar amount). 2) enclosure
statement (physical paper and other enclosures. 3) online statements and 4) image statements
(images of paid items)
X9.100-140 From Reg CC Ans: ✓ ✓ ✓ Substitute check standard = Annexes A,B, and C are
normative and considered a part of the standard. A = Return Reason Codes, B = Check or IRD
Conversion, C = Conversion table
X9.100-160 Ans: ✓ ✓ ✓ MICR Standard with two parts 1) placement and location and 2) EPC field
such as "2, 4, 5"
X9.100-187 Ans: ✓ ✓ ✓ Image exchange standard. Cash letter structure that supports the
exchange of posting data only, posting data and check images, posting data followed by additional
data and image file. Utilizes UCD as a guideline for industry consistency. Standard has a variable
record format.
Presentment Ans: ✓ ✓ ✓ Starts two processes: 1) return clocks (UCC and Reg CC) 2) once
presentment occurs, paying bank can charge customer's account
Clearing Ans: ✓ ✓ ✓ exchange of payment instruction data between Fis
Settlement Ans: ✓ ✓ ✓ exchange of value between Fis for payment
Gross settlement Ans: ✓ ✓ ✓ one payment (Wire)
Net settlement Ans: ✓ ✓ ✓ multiple payments (checks and ACH)
© Get it right 2025 Getaway - Stuvia US All rights reserved
