AAP Authorization Requirements 2

Question 1

For CCD entries (business-to-business ACH), what type of authorization is required?

Accepted Answer

A written agreement between the trading partners, though the format is flexible

Answer

A consumer-style written authorization with signature

Answer

Verbal authorization is sufficient for business accounts

Answer

A NACHA-approved authorization form specific to CCD

Question 2

An authorization for recurring PPD debits must notify the consumer of:

Accepted Answer

The right to stop payment and the procedure to exercise that right

Answer

The exact dollar amounts for every future debit in the series

Answer

The ODFI's name, routing number, and contact information

Answer

The ACH Operator's processing schedule and cutoff times

Question 3

When an Originator changes a Receiver's recurring debit amount from the amount previously disclosed, notice must be provided at least:

Accepted Answer

7 calendar days before the scheduled debit

Answer

On the same day as the debit occurs

Answer

30 days before the new amount is debited

Answer

No advance notice is required if within 10% of prior amount

Question 4

For POP entries, what must an Originator provide to the consumer at the point of purchase?

Accepted Answer

A receipt and clear notice that the check will be converted to an ACH debit entry

Answer

A copy of the NACHA Operating Rules for consumer reference

Answer

A written authorization for all future debit entries

Answer

The merchant's ODFI name and ACH company ID

Question 5

International ACH Transactions (IAT) require the Originator to include in mandatory addenda:

Accepted Answer

Details about the foreign financial institution and cross-border payment information

Answer

Only the Receiver's IBAN number in place of the routing number

Answer

A SWIFT code substituted for the RDFI routing number

Answer

Dual-currency authorization signed by both parties

Question 6

An electronic authorization for WEB entries is valid if it:

Accepted Answer

Is logically associated with the consumer's account information and can be reproduced in paper form

Answer

Includes a digital certificate issued by a NACHA-approved certificate authority

Answer

Is confirmed via SMS text message to the consumer's mobile number

Answer

Meets PCI-DSS Level 1 certification standards