Topics of Note from AAP Handbook - ACH Ops

Question 1

In an effort to improve the payment system, congress enacted the _______________, which encouraged private sector ACH operators to compete with the FRB

Answer 1

Monetary Control act in 1980

Question 2

The FRB operates on a _________ basis

Answer 2

for-profit

Question 3

A ________ is an organization that transmits entries to an ACH operator on behalf of an ODFI

Answer 3

sending point

Question 4

A ____________ can be an RDFI itself, a participating DFI or a designated Third-Party service provider that has entered into an agreement to receive ACH files for the RDFI.

Answer 4

receiving point

Question 5

An organization that performs any function of ACH processing of entries on behalf of the originator, the third-party sender, the ODFI or RDFI.

Answer 5

Third-party service provider

Question 6

Type of third-party service provider. A__________ acts as an intermediary on behalf of the originator or another third-party sender in transmitting entries between an originator and the ODFI when there is not an origination agreement directly between the originator and the ODFI.

Answer 6

third-party sender

Question 7

In the case of third-party senders, there is no origination agreement between the _______ and __________.

Answer 7

ODFI, originator

Question 8

The __________ Requires an agreement between the ODFI and the third-party sender AND between the third-party sender the nested third-party sender.

Answer 8

The NACHA operating rules

Question 9

A third-party sender is always a ____________ that acts on behalf of an originator, but a ______________ does not always act as a third-party sender.

Answer 9

third-party service provider

Question 10

A third-party service provider is considered to be a _________________ when it acts as an intermediary between the ODFI and the originator and there is no contractual agreement between the originator and the ODFI.

Answer 10

third-party sender

Question 11

Limit of same day debit entries

Answer 11

$1,000,000 or less

Question 12

The first step in processing an automated file is a _______________. This produces an edit report that shows the content of the file and displays batches of ACH entries.

Answer 12

computer edit

Question 13

Some items commonly included in an _______________ are header info, routing and acct numbers, dollar amount, tran code, trace numbers and check digit

Answer 13

edit report

Question 14

Batch totals are listed by entry count and dollar amount at the end of the ___________________

Answer 14

detailed entries

Question 15

stores ACH entries for posting

Answer 15

pending file

Question 16

ACH entries submitted with the same day effective date by 10:30 AM will settle at __________, those submitted by 2:45 will settle at _____________ and those received by 4:45 PM will settle at ____________ (all times EST).

Answer 16

1:00 PM, 5:00 PM, 6:00 PM

Question 17

Entries other than Same Day ACH entries will settle at ___________on the settlement date.

Answer 17

8:30 AM

Question 18

ACH debits will be delivered to an RDFI no earlier than _______ banking day prior to the settlement date

Answer 18

one

Question 19

NACHA operating rules sates that _______ cannot be posted prior to the settlement date.

Answer 19

debits

Question 20

ACH credits will be delivered to an RDFI no earlier than _______ banking days prior to the settlement date (NOTE: Federal Government recurring pymts can be delivered earlier).

Answer 20

two

Question 21

Settlement between the originator and the ODFI is governed by ___________

Answer 21

agreement

Question 22

Settlement between the RDFI and the Receiver is determined by the:

Answer 22

NACHA operating rules
Federal Reserve schedules
agreement

Question 23

ACH settlement procedures are the same for consumer and _______ transactions

Answer 23

corporate

Question 24

Returns must be transmitted to the ACH operator by its deposit deadline for the entry to be made available to the ODFI no later than:

Answer 24

the opening of business on the second banking day following the settlement date of the original entry

Question 25

***An RCK return entry must be transmitted by the RDFI to its ACH operator by:

Answer 25

midnight of the second banking day following the banking day of receipt of the ACH entry

Question 26

The NACHA operating rules do not specify a notification method or the specific timeframe that the ODFI must notify the _______ of a return entry

Answer 26

originator

Question 27

If a dispute exists after the RDFI contests or corrects a dishonored return, the resolution should be negotiated _______________________________________

Answer 27

outside the ACH processing system

Question 28

the placement of the file, batch or entry into an idle state during processing by the ACH operator due to an error condition

Answer 28

“pend”

Question 29

A file, batch, or entry placed into a pending status by the operator will await actions to be released or rejected based on the instructions provided by ____________________

Answer 29

the sending point

Question 30

For an NOC, the change requested by an RDFI is identified by a:

Answer 30

three-character change reason code (ex C01).

Question 31

A reversing file must be sent within ___________ of discovering the error

Answer 31

24 hours