AAP Rules Review

Question 1

The beneficiaries of the NACHA Operating Rules are __?__, __?__, __?__.

Answer 1

Each participating DFI, ACH Operator, and the National Association. (Article 1.9)

Question 2

Any agreement, authorization, Written Statement of Unauthorized Debit or other record that is required to be signed or similarly authenticated may be signed with an electronic signature in conformity with the terms of the __?__.

Answer 2

Electronic Signatures in Global and National Commerce Act. (Article 1.4.4)

Question 3

The Authorization of a debit Entry to a Consumer Account of the Receiver must obtain a written authorization that is signed or __?__ by the Receiver except as __?__ by these Rules.

Answer 3

similarly authenticated; expressly permitted (Article 2.3.2.2)

Question 4

The Originator must provide __?__ to the Receiver prior to originating an ARC entry.

Answer 4

a notice (Article 2.5.1.2)

Question 5

At the time an entry is processed by an RDFI, the authorization has not been terminated, in whole or in part, by _?__.

Answer 5

Operation of law (Article 2.4.1.1c)

Question 6

If a personal identification number (PIN) is required, it must comply with the American National Standards Institute’s (ANSI) Accredited Standards Committee (ASC) __?__ standards.

Answer 6

X9.8 ; (Article 2.5.9.2)

Question 7

Prior to the initiation of the first credit or debit entry to a Receiver’s account with an RDFI, an Originator may originate a __?__ to the RDFI.

Answer 7

Prenotification entry (Article 2.6.1)

Question 8

A Reversing File must be made available to the ACH Operator within __?__ of the discovery of the Erroneous File.

Answer 8

24 hours (Article 2.9.3)

Question 9

An ODFI that initiates a Reversing or Correcting File shall __?__ each Participating DFI and ACH Operator.

Answer 9

indemnify (Article 2.9.4)

Question 10

An originator or ODFI must originate a Reclamation entry or written demand for payment within __?__ after the Originator receives notice of the death of the Receiver. (Article __?__)

Answer 10

5 Banking Days (Article 2.1.1.4)

Question 11

The __?__ warrants that all signatures are genuine on all XCK entries.

Answer 11

ODFI (Article 2.5.18.5)

Question 12

An Originator must retain a copy of the front and back of the item to which the RCK entry relates for __?__ from the Settlement Date of the RCK entry.

Answer 12

7 years (Article 2.5.13.5)

Question 13

The Check, relative to an initiated ARC must be delivered via __?__.

Answer 13

US mail, drop box, or in person for a payment of a bill at a manned location. (Article 2.5.1.1)

Question 14

A copy of the source document for an ARC entry must be kept for __?__ years from the settlement date of the ARC entry.

Answer 14

2 years (Article 2.5.1.5)

Question 15

The Originator of an ARC entry must employ commercially reasonable methods, regarding eligible source documents, to __?__:

Answer 15

securely store all banking information until destruction;

Question 16

During the initial capture of MICR information for a BOC or POP entry, the Originator must initially use a __?__ to capture the Receivers __?__ from the MICR line of the Receivers Eligible Source Document.

Answer 16

reading device; routing number, account number, and check serial number (BOC Article 2.5.2.4) (POP Article 2.5.10.4)

Question 17

ODFIs warrant that they have established procedures to maintain __?__ on each Originator of BOC Entries. This includes: company name, address, telephone number; contact person; taxpayer identification; and description of the nature of the business.

Answer 17

documentation (Article 2.5.2.5)

Question 18

Originators of BOC entries must maintain a working __?__. This must also be displayed in the notice provided to the Receiver.

Answer 18

Customer Service Telephone Number (Article 2.5.2.5)

Question 19

Each originator of debit WEB entries must have employed a commercially reasonable __?__ to screen each debit WEB entry.

Answer 19

fraudulent transaction detection system (Article 2.5.17.4)

Question 20

Each Originator that originates debit WEB entries must verify the Receiver’s __?__ used in the WEB entry is valid.

Answer 20

routing number (Article 2.5.17.6)

Question 21

Upon written request by the National Association, an ODFI must provide within __?__ detailed information for each Originator or Third-Party sender regarding NACHA’s claim that the Originator’s or Third-Party Sender’s Return Rate for unauthorized entries exceeded .5%.

Answer 21

10 Banking Days; (Article 2.18.2)

Question 22

If an Originator changes the payment date of a scheduled debit to a consumer’s account, they must provide notice within __?__ days of the affected entry.

Answer 22

7 calendar days (Article 2.3.2.8c)

Question 23

An Originator of BOC entries must employ commercially reasonable methods to __?__ & __?__ of the Receiver.

Answer 23

verify & identify (Article 2.5.2.5)

Question 24

Each Originator that initiates TEL entries must employ __?__ procedures to verify the identity of the Receiver.

Answer 24

commercially reasonable (Article 2.5.15.4)

Question 25

When the RDFI requests a copy of a Receiver’s authorization in writing, the ODFI must provide it to the RDFI within __?__ Days.

Answer 25

10 banking days (Article 2.3.2.7c)

Question 26

An RDFI may rely solely on the __?__ contained in an entry for the purpose of posting the entry to a Receiver’s account.

Answer 26

Account Number (Article 3.1.2)

Question 27

A credit entry that is not a Same Day Entry that is made available to the RDFI by 5:00 p.m. local time on the Banking Day prior to the Settlement Date shall be made available to the Receiver for withdrawal no later than __?__ on the Settlement Day. (Article __?__)

Answer 27

9AM RDFI Local Time

Question 28

If requested by the Receiver, the RDFI must provide all information contained within __?__; transmitted with __?__ (transaction types) to the Receiver by the opening of business on the second Banking Day following the Settlement Date of the entry.

Answer 28

Payment-related Information Field of the Addenda Record; CCD, CTX, CIE, or IAT entry to a Non-Consumer Account (Article 3.1.5.3)

Question 29

Third-Party Senders must provide, upon the ODFI’s request, information related to each __?__ for which it transmits entries.

Answer 29

Originator (Article 2.16.2)

Question 30

All entries, except RCK, that are returned as R01 & R09 can be reinitiated a maximum of __?__ times following the return of the original entry.

Answer 30

Two (Article 2.13.4.1)

Question 31

An RDFI may contest or correct a dishonored Return Entry as long as it is Transmitted within __?__ Banking Days of the Settlement Date of the dishonored Return Entry.

Answer 31

Two (Articles 3.8.5.1 & 3.8.5.2)

Question 32

Each Participating DFI must maintain, or have the use through a correspondent of, an account with a __?__.

Answer 32

Federal Reserve Bank (Article 7.1)

Question 33

An ODFI may, __?__ or in writing, request an RDFI to return an Erroneous entry that was sent by the ODFI.

Answer 33

orally (Article 2.13.2)

Question 34

An RDFI must have a Written Statement of Unauthorized Debit signed by the __?__, prior to returning an ACH debit entry as unauthorized.

Answer 34

Receiver (Article 3.13.2)

Question 35

An RCK entry that has been determined to be ineligible must be returned so as to be made available to the ODFI no later than the opening of business on the __?__ calendar day after Settlement.

Answer 35

sixtieth (Appendix Four Part 4.2: R51)

Question 36

An ACH Operator acting as a Gateway must not process __?__ Inbound IAT entries, except for Reversing entries.

Answer 36

debit (Article 5.1.8)

Question 37

The Gateway (Operator) will comply with all applicable U.S. Laws including requirements administered by __?__ & __?__.

Answer 37

OFAC & FinCEN (Article 5.1.2)

Question 38

An ACH Operator must total the __? __ activity received from and Transmitted to each other ACH Operator and Participating DFI during each Banking Day.

Answer 38

debit & credit (Article 4.2.7)