AAP Authorization Requirements 3

Question 1

Which of the following is NOT a required element of a valid PPD debit authorization?

Accepted Answer

The Originator's profit margin or fee disclosure

Answer

The payment schedule or frequency of debits

Answer

The Receiver's name

Answer

The Originator's name

Question 2

Stop payment requests from consumers regarding ACH debits must be honored by the RDFI if received:

Accepted Answer

In time to allow a reasonable opportunity to act before the scheduled debit

Answer

At least 3 banking days before the scheduled debit

Answer

30 days in advance of the debit date

Answer

Only if submitted in writing to the RDFI branch

Question 3

When an RDFI requests proof of authorization for a PPD debit entry on behalf of a disputing consumer, the ODFI must respond within:

Accepted Answer

10 banking days of the request

Answer

2 banking days of the request

Answer

30 calendar days of the request

Answer

Same banking day of the request

Question 4

For ARC entries, the notice posted by the Originator at the point of check collection must be:

Accepted Answer

Clear and conspicuous, informing consumers that their check will be converted to an ACH debit

Answer

Printed directly on the back of every check accepted

Answer

Sent via email to the consumer prior to the collection date

Answer

Posted only on the Originator's public website

Question 5

Prenotification (prenote) entries sent before live dollar ACH entries allow an Originator to:

Accepted Answer

Test the validity of a Receiver's account information before sending live transactions

Answer

Pre-authorize a payment that will be debited on a specific future date

Answer

Notify the RDFI of an upcoming high-value transaction for review

Answer

Reserve settlement funds at the RDFI in advance

Question 6

A zero-dollar account verification entry sent before initiating WEB debits is used to:

Accepted Answer

Verify that the Receiver's account is open and the account number is valid

Answer

Calculate the Receiver's available credit limit for debit transactions

Answer

Confirm the Receiver's identity with NACHA's verification registry

Answer

Reserve settlement capacity at the ACH Operator in advance