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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.

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  1. Which return code is used when the RDFI cannot identify or locate the account referenced in the entry?

    Answer: R03 (No Account/Unable to Locate Account)

    R03 (No Account/Unable to Locate Account) is used when the account number cannot be matched to any existing account at the RDFI.

  2. A contested dishonored return must be sent by the RDFI within:

    Answer: 1 banking day of receiving the dishonored return

    If an RDFI contests a dishonored return, it must transmit the contested dishonored return within 1 banking day of receiving the dishonored return.

  3. NOC change code C05 indicates:

    Answer: Incorrect transaction code

    C05 is used in a Notification of Change when the transaction code (indicating account type and credit/debit) in the entry is incorrect.

  4. When an Originator receives a Notification of Change, they must make the required corrections:

    Answer: Within 6 banking days of the NOC settlement date or before initiating the next entry, whichever is later

    NACHA rules require Originators to update their records based on NOC data within 6 banking days of the NOC's settlement date or before the next entry to that account.

  5. Return code R08 means:

    Answer: Payment stopped—the Receiver has requested a stop payment on the entry

    R08 (Payment Stopped) is returned when the Receiver has placed a stop payment order with the RDFI specifically covering the ACH debit entry.

  6. A late return is defined as one that is:

    Answer: Transmitted after the applicable return deadline, making the RDFI liable for the amount

    A late return is one that the RDFI transmits after the deadline established by NACHA rules, exposing the RDFI to liability for any losses that result.