Returns, Reversals, and Adjustments Flashcards
6 cards from real AAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Returns, Reversals, and Adjustments flashcards as text
A reversing entry must be transmitted within how many banking days after the original entry's settlement date?
Answer: 5 banking days
Under NACHA rules, a reversing entry must be sent within 5 banking days of the original entry's settlement date.
Return code R07 indicates:
Answer: Authorization revoked by the Receiver
R07 (Authorization Revoked by Consumer) is used when a consumer has revoked a previously granted authorization for recurring debits.
NOC change code C01 indicates:
Answer: Incorrect DFI account number
C01 is the change code used in a Notification of Change to indicate that the DFI account number in the entry is incorrect and needs to be updated.
When an ODFI receives a return entry from an ACH Operator, it must pass the return to the Originator within:
Answer: 2 banking days of receiving the return
The ODFI must pass return entries to the Originator within 2 banking days of receiving them from the ACH Operator.
A dishonored return is when:
Answer: An ODFI returns a return entry because it does not comply with NACHA rules
A dishonored return is transmitted by an ODFI when it receives a return entry that it believes was improper or untimely under NACHA Operating Rules.
Return code R29 indicates:
Answer: Corporate customer advises the entry is not authorized (for CCD, CTX, or other corporate entries)
R29 (Corporate Customer Advises Not Authorized) is the business equivalent of R10, used when a corporate Receiver states a debit entry was not authorized.