Practice Test GeeksBank Code Practice Test
← All Bank Code Flashcard Decks

Bank Code Errors Flashcards

6 cards from real Bank Code practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Bank Code Errors flashcards as text

  1. What happens if you enter a routing number with only 8 digits on an ACH form?

    Answer: The form will reject the entry or the payment will fail validation

    A routing number with only 8 digits is invalid — ACH systems require exactly 9 digits and will reject any entry that does not meet this requirement.

  2. A company received an ACH return code R02. What does this mean?

    Answer: The account has been closed

    ACH return code R02 means the account has been closed — the routing number was valid and the account once existed, but has since been closed.

  3. If a business enters a customer's routing number correctly but the account number has extra digits, what return code will they receive?

    Answer: R04 — Invalid Account Number

    An account number with the wrong number of digits or invalid format will generate an R04 return code — Invalid Account Number.

  4. What is the best way to prevent routing number errors when receiving payment information from customers?

    Answer: Use a pre-note or micro-deposit verification process before the first real transaction

    Pre-note verification or micro-deposit confirmation sends a zero-dollar or small test transaction first to verify the routing and account numbers are valid before processing real payments.

  5. What is a 'pre-note' in ACH processing?

    Answer: A zero-dollar test transaction that verifies routing and account number validity

    A pre-note is a zero-dollar ACH test entry sent before real transactions to confirm that the routing number and account number are valid and can receive payments.

  6. How should a business handle an ACH transaction that has already settled but was sent to the wrong account due to an incorrect routing number?

    Answer: Contact their ODFI bank to initiate a Reversing Entry or Automated Reversal

    For settled ACH transactions sent to wrong accounts, businesses must work through their Originating Depository Financial Institution (ODFI) to submit a reversing entry within five banking days.