Free AAP ACH Rules and Regulations Questions and Answers

Question 1

According to Reg E, a financial institution must provide notification to a consumer within ___ day(s) of preauthorized transfer.

Accepted Answer

2 business days

Answer

According to Regulation E, financial institutions must provide notification to a consumer within two business days of a preauthorized transfer. This rule ensures consumers are promptly informed about transactions affecting their accounts. This notification helps consumers monitor their finances and identify any unauthorized activity quickly.

Question 2

For which of the following return codes is a Written Statement of Unauthorized Debit not required?

Accepted Answer

R-38

Answer

For the return code R-38 (Stop Payment on Source Document), a Written Statement of Unauthorized Debit (WSUD) is not required. A WSUD is typically needed for unauthorized transactions where the consumer claims they did not authorize the debit. However, for an R-38, the consumer has already initiated a stop payment, which serves as sufficient notification to the financial institution.

Question 3

When will an ODFI receive returns with an R18 code from the ACH Operator?

Accepted Answer

When debits have been released to the operator two days prior to their effective date.

Answer

An ODFI (Originating Depository Financial Institution) will receive returns with an R18 code when debits have been released to the ACH Operator two days prior to their effective date. This code, 'Improper Effective Entry Date,' indicates that the effective date on the debit entry is too far in the future, violating ACH Rules for timely processing. The ACH Operator will return such entries to the ODFI.

Question 4

The ACH Rules state that items returned for R01 and R09 can only be reinitiated two times for all of the following SEC codes except:

Accepted Answer

RCK

Answer

The Nacha Operating Rules state that items returned for R01 (Insufficient Funds) and R09 (Uncollected Funds) can only be reinitiated two times for most SEC codes, but RCK (Re-presented Check Entry) is an exception. RCK entries have specific reinitiation rules that differ from other SEC codes, allowing for a different re-presentment process for checks converted to ACH.

Question 5

What is the Addenda Type Code used for an IAT Return?

Accepted Answer

99

Answer

For an International ACH Transaction (IAT) Return, the Addenda Type Code used is 99. This specific code is designated within the ACH file format to identify an IAT return, ensuring proper handling and routing of international payment returns. It helps distinguish IAT returns from other types of ACH returns.

AAP - Accredited ACH Professional Practice Test

AAP - Accredited ACH Professional Practice Test

Free AAP ACH Rules and Regulations Questions and Answers