AAP Authorization Requirements

Question 1

For PPD debit entries, the written authorization obtained by an Originator must be:

Accepted Answer

Clear, readily understandable, and contain the payment amount, schedule, and Receiver's account information

Answer

NACHA rules require that PPD debit authorizations be clear, readily understandable, and include key terms such as the payment amount, frequency, and start date.

Question 2

A consumer's written authorization for a recurring ACH debit must include which essential element?

Accepted Answer

The Receiver's signature or electronic equivalent authorizing the debit

Answer

An authorization for recurring ACH debits must be signed or agreed to by the consumer (Receiver) using a written signature or its electronic equivalent.

Question 3

For TEL entries, an Originator may initiate a one-time ACH debit only if:

Accepted Answer

There is an existing relationship with the consumer OR the consumer initiated the call

Answer

TEL requires either an existing relationship between the Originator and consumer, or the consumer must have initiated the telephone call to the Originator.

Question 4

How long must an Originator retain authorization records for ACH entries?

Accepted Answer

2 years from the termination or revocation of the authorization

Answer

NACHA rules require Originators to retain the original or copy of each authorization for 2 years after the authorization is terminated or revoked.

Question 5

For WEB debit entries, what additional security requirement is imposed on Originators?

Accepted Answer

An annual audit to validate the security of transmission and storage of Receiver banking information

Answer

NACHA rules require Originators of WEB entries to conduct an annual audit of their data security practices for transmitting and storing Receiver banking information.

AAP - Accredited ACH Professional Practice Test

AAP - Accredited ACH Professional Practice Test

AAP Authorization Requirements