Free AAP Operational Processes Questions and Answers
In ACH operations, what is the primary purpose of the prenotification (prenote) process?
Prenotes are zero-dollar test transactions sent by the Originator to verify the accuracy of the Receiver's account information before initiating actual (live) ACH entries. This helps prevent errors in live transactions.
What is the standard return timeframe for unauthorized ACH debit entries according to the Nacha Operating Rules?
Under the Nacha Operating Rules, consumers have 60 calendar days from the settlement date of an unauthorized debit entry to notify their financial institution and have the entry returned.
What is the main responsibility of the Originating Depository Financial Institution (ODFI) in ACH transactions?
The ODFI is responsible for ensuring that all ACH entries comply with the Nacha Operating Rules and for properly transmitting entries to the ACH Operator. The ODFI also warranties the validity of the entries it transmits.
What is a Notification of Change (NOC) in the ACH Network, and how should it be handled?
An NOC is sent by the RDFI to notify the ODFI and Originator of incorrect information in an ACH entry. The Originator must make the necessary changes within 6 banking days or before the next payment cycle, whichever is later.
Which of the following best describes an ACH "batch"?
In ACH operations, a "batch" refers to a group of ACH transactions submitted together by an ODFI for processing by the ACH Operator. Batching allows for efficient processing and settlement of multiple transactions.