AAP Authorization Requirements 3

Question 1

Which of the following is NOT a required element of a valid PPD debit authorization?

Accepted Answer

The Originator's profit margin or fee disclosure

Answer

While profit margin disclosures may be required by other laws, they are not a required element of a NACHA-compliant PPD debit authorization.

Question 2

Stop payment requests from consumers regarding ACH debits must be honored by the RDFI if received:

Accepted Answer

In time to allow a reasonable opportunity to act before the scheduled debit

Answer

Under Regulation E and NACHA rules, the RDFI must honor a stop payment request if it is received in time for the institution to have a reasonable opportunity to act on it.

Question 3

When an RDFI requests proof of authorization for a PPD debit entry on behalf of a disputing consumer, the ODFI must respond within:

Accepted Answer

10 banking days of the request

Answer

NACHA rules require the ODFI (and thus the Originator) to provide proof of authorization to the RDFI within 10 banking days of a written request.

Question 4

For ARC entries, the notice posted by the Originator at the point of check collection must be:

Accepted Answer

Clear and conspicuous, informing consumers that their check will be converted to an ACH debit

Answer

For ARC, NACHA requires a clear and conspicuous notice at the collection point (e.g., billing statement or return envelope) that checks may be converted to ACH debits.

Question 5

Prenotification (prenote) entries sent before live dollar ACH entries allow an Originator to:

Accepted Answer

Test the validity of a Receiver's account information before sending live transactions

Answer

A prenote is a zero-dollar test entry that validates account and routing numbers before the Originator begins sending live dollar entries to that account.

AAP - Accredited ACH Professional Practice Test

AAP - Accredited ACH Professional Practice Test

AAP Authorization Requirements 3