AAP Returns, Reversals, and Adjustments 2

Question 1

A reversing entry must be transmitted within how many banking days after the original entry's settlement date?

Accepted Answer

5 banking days

Answer

Under NACHA rules, a reversing entry must be sent within 5 banking days of the original entry's settlement date.

Question 2

Return code R07 indicates:

Accepted Answer

Authorization revoked by the Receiver

Answer

R07 (Authorization Revoked by Consumer) is used when a consumer has revoked a previously granted authorization for recurring debits.

Question 3

NOC change code C01 indicates:

Accepted Answer

Incorrect DFI account number

Answer

C01 is the change code used in a Notification of Change to indicate that the DFI account number in the entry is incorrect and needs to be updated.

Question 4

When an ODFI receives a return entry from an ACH Operator, it must pass the return to the Originator within:

Accepted Answer

2 banking days of receiving the return

Answer

The ODFI must pass return entries to the Originator within 2 banking days of receiving them from the ACH Operator.

Question 5

A dishonored return is when:

Accepted Answer

An ODFI returns a return entry because it does not comply with NACHA rules

Answer

A dishonored return is transmitted by an ODFI when it receives a return entry that it believes was improper or untimely under NACHA Operating Rules.

AAP - Accredited ACH Professional Practice Test