AAP Authorization Requirements 2

Question 1

For CCD entries (business-to-business ACH), what type of authorization is required?

Accepted Answer

A written agreement between the trading partners, though the format is flexible

Answer

CCD entries require a written agreement between the Originator and Receiver, but NACHA does not prescribe a specific format for business-to-business authorizations.

Question 2

An authorization for recurring PPD debits must notify the consumer of:

Accepted Answer

The right to stop payment and the procedure to exercise that right

Answer

NACHA requires that recurring debit authorizations inform consumers of their right to stop payment and how to exercise that right, protecting consumer interests.

Question 3

When an Originator changes a Receiver's recurring debit amount from the amount previously disclosed, notice must be provided at least:

Accepted Answer

7 calendar days before the scheduled debit

Answer

NACHA rules require Originators to notify consumers at least 7 calendar days in advance when the debit amount will vary from the amount stated in the authorization.

Question 4

For POP entries, what must an Originator provide to the consumer at the point of purchase?

Accepted Answer

A receipt and clear notice that the check will be converted to an ACH debit entry

Answer

For POP entries, the Originator must provide the consumer with a receipt and prominent notice that their check will be converted to an ACH debit and is not their original check.

Question 5

International ACH Transactions (IAT) require the Originator to include in mandatory addenda:

Accepted Answer

Details about the foreign financial institution and cross-border payment information

Answer

IAT entries require multiple mandatory addenda records containing detailed information about the originating and receiving financial institutions and cross-border payment details.

AAP - Accredited ACH Professional Practice Test

AAP - Accredited ACH Professional Practice Test

AAP Authorization Requirements 2