CPP CPP Electronic Payments & ACH 2

Question 1

What is an R02 return code in an ACH transaction?

Accepted Answer

Account Closed

Answer

R02 is the ACH return code indicating that the bank account has been closed by the account holder.

Question 2

What is the typical return timeframe for an unauthorized ACH consumer debit (R10)?

Accepted Answer

60 calendar days

Answer

Under Nacha rules, a consumer can return an unauthorized ACH debit (R10) up to 60 calendar days from the settlement date.

Question 3

Which Federal Reserve system provides real-time gross settlement for high-value transactions in the US?

Accepted Answer

Fedwire Funds Service

Answer

Fedwire Funds Service is the Federal Reserve's real-time gross settlement (RTGS) system used for large-value, time-critical payments.

Question 4

What does RDFI stand for in the ACH payment network?

Accepted Answer

Receiving Depository Financial Institution

Answer

RDFI stands for Receiving Depository Financial Institution — the bank that receives the ACH entry on behalf of the receiver.

Question 5

Under Nacha rules, how long does an ODFI have to honor a return entry from an RDFI?

Accepted Answer

5 banking days

Answer

The ODFI must accept return entries transmitted within the applicable return timeframe, which for most return reasons is 2 banking days, but the ODFI has 5 banking days to dishonor improper returns.

CPP - Certified Payment Professional Practice Test

CPP - Certified Payment Professional Practice Test

CPP CPP Electronic Payments & ACH 2