CCM CCM Payment Systems & Technology 2 — Questions and Answers
Question 1: Positive Pay is a bank fraud prevention tool that works by:
- Speeding up ACH settlement times for payroll
- Having companies pre-authorize issued checks so the bank can detect unauthorized items (Correct answer)
- Encrypting payment data during electronic transmission
- Automatically reconciling bank statements daily
Correct answer: Having companies pre-authorize issued checks so the bank can detect unauthorized items
Positive Pay requires companies to send a file of issued check details to their bank, which then matches presented items to detect and flag unauthorized or altered checks.
Question 2: Straight-through processing (STP) in payment systems is enabled by:
- Manual invoice approval workflows with dual authorization
- Automated data matching and payment execution without human intervention (Correct answer)
- Paper-based check clearing through correspondent banks
- Batch overnight processing with next-day settlement
Correct answer: Automated data matching and payment execution without human intervention
STP uses automation to execute payments from initiation through settlement without manual touchpoints, improving speed, accuracy, and reducing operational risk.
Question 3: PCI DSS compliance is required for organizations that:
- Process ACH payroll transactions above $1 million
- Store, process, or transmit payment cardholder data (Correct answer)
- Issue corporate bonds or commercial paper
- Operate healthcare billing systems
Correct answer: Store, process, or transmit payment cardholder data
PCI DSS (Payment Card Industry Data Security Standard) applies to any entity that stores, processes, or transmits payment card data regardless of industry.
Question 4: A payment hub in corporate treasury is best described as:
- A physical facility where checks are sorted and processed
- A centralized platform that manages and routes all payment types through a single system (Correct answer)
- A Federal Reserve branch that processes wire transfers locally
- A blockchain network for settling intercompany cryptocurrency payments
Correct answer: A centralized platform that manages and routes all payment types through a single system
A payment hub centralizes all payment processing — across multiple banks, currencies, and payment types — through a single technology platform for visibility and control.
Question 5: EBAM (Electronic Bank Account Management) primarily helps corporate treasurers:
- Process payroll disbursements faster across subsidiaries
- Manage bank account opening, closing, and signatory changes electronically (Correct answer)
- Automate accounts receivable reconciliation with ERP systems
- Monitor real-time payment fraud across all banking partners
Correct answer: Manage bank account opening, closing, and signatory changes electronically
EBAM digitizes and automates the bank account lifecycle — opening, closing, and updating accounts and authorized signatories — replacing paper-based bank administration.
Question 6: Which best describes a real-time payment (RTP) network such as The Clearing House RTP?
- A batch processing system that settles payments twice each business day
- A system providing immediate, final payment settlement available 24 hours a day, 7 days a week (Correct answer)
- An overnight clearing system designed for large-value corporate transactions
- An international wire transfer network for cross-border settlement
Correct answer: A system providing immediate, final payment settlement available 24 hours a day, 7 days a week
Real-time payment networks like The Clearing House RTP provide immediate, irrevocable settlement around the clock, including nights, weekends, and holidays.
CCM CCM Payment Systems & Technology 2
Positive Pay is a bank fraud prevention tool that works by: