AAP Compliance and Audit 3

Question 1

Excessive administrative return rates (R02, R03, R04) for an Originator may indicate:

Accepted Answer

Data quality problems or potential fraud in the Originator's account database

Answer

High administrative return rates suggest the Originator's account database is inaccurate or outdated, which may also be a fraud indicator requiring ODFI investigation.

Question 2

Under Regulation E, a financial institution's error resolution process must be completed within:

Accepted Answer

10 business days (or 45 calendar days if provisional credit is extended to the consumer)

Answer

Regulation E requires institutions to investigate and resolve error claims within 10 business days, or up to 45 calendar days if they provisionally credit the disputed amount while investigating.

Question 3

When must an ODFI suspend an Originator's ACH origination privileges?

Accepted Answer

When the ODFI determines the Originator has materially breached the origination agreement or NACHA rules

Answer

An ODFI must suspend an Originator that has materially breached the ACH origination agreement or the NACHA Operating Rules to protect the network and limit the ODFI's liability.

Question 4

Same-Day ACH rules require ODFIs to submit same-day entries to the ACH Operator by:

Accepted Answer

Specific same-day processing windows (e.g., 10:30 AM ET and 2:45 PM ET)

Answer

Same-Day ACH has defined submission windows (such as 10:30 AM ET and 2:45 PM ET) that ODFIs must meet for entries to receive same-day settlement.

Question 5

The administrative return rate threshold (R02, R03, R04) that triggers NACHA review of an Originator is:

Accepted Answer

3% of ACH debit entries originated

Answer

An administrative return rate exceeding 3% triggers NACHA review, indicating the Originator's account database has significant data quality issues.

AAP - Accredited ACH Professional Practice Test

AAP - Accredited ACH Professional Practice Test

AAP Compliance and Audit 3