Mixed Deck — All Bank Code Topics Flashcards
100 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 20 Mixed Deck — All Bank Code Topics flashcards as text
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.
What is the correct first step in the MOD 97 IBAN validation process?
Answer: Move the first four characters to the end of the number string
The first step is to relocate the leading 4 characters (country code + check digits) to the end of the string before performing numerical conversion and division.
When a US bank merges with another, who must approve any routing number consolidation or changes?
Answer: The ABA Routing Number Policy and Administration department
Routing number consolidation or changes during bank mergers must be approved by the ABA Routing Number Policy and Administration department, which maintains the national registry.
What do characters 1–4 of a SWIFT/BIC code identify?
Answer: The bank or financial institution code
The first four alphabetical characters of a SWIFT code form the institution code, uniquely identifying the bank or financial organization.
Which institution maintains the official registry of ABA routing numbers?
Answer: The American Bankers Association / its registrar
The American Bankers Association oversees the assignment of routing numbers through its registrar.
Where on a paper check is the routing number typically located?
Answer: Bottom-left, as the first set of numbers
The routing number is the first nine-digit set in the MICR line at the bottom-left of a check.
Which organization is responsible for assigning and maintaining SWIFT/BIC codes?
Answer: SWIFT (the SWIFT organization)
The SWIFT organization, based in Belgium, registers and maintains BIC codes worldwide.
What is the main purpose of an IBAN?
Answer: To standardize identification of bank accounts across borders
An IBAN (International Bank Account Number) standardizes account identification to reduce cross-border payment errors.
Which US regulation requires banks to make funds from deposited checks available within certain timeframes?
Answer: Regulation CC (Expedited Funds Availability Act)
Regulation CC, implementing the Expedited Funds Availability Act, requires banks to make funds from deposited checks available within specific timeframes based on check type and account history.
If someone gains access to your bank routing number alone, what can they do with it?
Answer: Set up unauthorized direct debits combined with your account number
A routing number alone is not sufficient for fraud, but combined with your account number it can be used to set up unauthorized ACH debits.
Which organization maintains the official registry of US ABA routing numbers?
Answer: American Bankers Association
The American Bankers Association maintains the official registry of ABA routing numbers through its Routing Number Policy and Administration department.
How long do banks typically take to process an ACH return for an incorrect routing or account number?
Answer: Up to 2 business days
ACH returns for invalid routing or account numbers are typically processed within 2 business days under NACHA rules.
Which free resource provided by the Federal Reserve allows instant verification of US routing numbers?
Answer: Federal Reserve E-Payments Routing Directory
The Federal Reserve's E-Payments Routing Directory (EPRD) is the official, free tool for looking up and verifying ABA routing numbers in real time.
Which detail is NOT needed to find a routing number on a check?
Answer: The signature on the front
The signature is irrelevant to locating the routing number, which sits in the MICR line.
What does the first set of four characters in a SWIFT code represent?
Answer: The bank or institution code
The first four letters of a SWIFT code form the bank code identifying the institution.
What does ACH return code R01 indicate?
Answer: Insufficient funds in the account
R01 is the standard NACHA return code for Insufficient Funds, meaning the account exists but does not have enough money to cover the transaction.
What does the abbreviation 'BIC' stand for?
Answer: Bank Identifier Code
BIC stands for Bank Identifier Code, also known as a SWIFT code.
What must US banks include on wire transfer receipts to comply with CFPB remittance transfer rules?
Answer: Exchange rates, fees, and the amount expected to be received by the recipient
CFPB remittance transfer rules require banks to disclose exchange rates, all fees, and the amount the recipient will receive, giving consumers full cost transparency.
What does 'positive pay' help protect against in US banking?
Answer: Check fraud by verifying check details before clearing
Positive pay is a check fraud prevention service where the bank matches issued check details (number, amount, payee) against presented checks before clearing them.
How many digits are in a bank code in Spain?
Answer: 10
In Spain, a bank code typically consists of 10 digits. This domestic code is part of the Basic Bank Account Number (BBAN) within an IBAN. It is structured to identify the specific bank, branch, and includes control digits for domestic transactions within the Spanish banking system.