AAP Returns, Reversals, and Adjustments 1 — Questions and Answers
Question 1: What is the return timeframe for an RDFI to return an unauthorized consumer debit entry using return code R10?
- 60 calendar days from the settlement date of the original entry (Correct answer)
- 2 banking days from the settlement date
- 5 banking days from the settlement date
- 90 calendar days from the settlement date
Correct answer: 60 calendar days from the settlement date of the original entry
R10 (Customer Advises Not Authorized) has a 60 calendar-day extended return window, reflecting consumer protection rights for unauthorized debits.
Question 2: Return code R01 indicates:
- Insufficient funds in the Receiver's account (Correct answer)
- Account has been closed
- No account or unable to locate the account
- Payment stopped by the Receiver
Correct answer: Insufficient funds in the Receiver's account
R01 (Insufficient Funds) means the Receiver's account did not have enough available funds to cover the debit entry at the time of posting.
Question 3: Return code R02 means:
- The Receiver's account has been closed (Correct answer)
- Insufficient funds in the account
- Invalid account number structure
- Authorization has been revoked
Correct answer: The Receiver's account has been closed
R02 (Account Closed) indicates that the account number matched an account that has since been closed and can no longer receive entries.
Question 4: For most standard return reasons, an RDFI must return an ACH entry within how many banking days of the settlement date?
- 2 banking days (Correct answer)
- 5 banking days
- 60 calendar days
- Same business day
Correct answer: 2 banking days
The standard return timeframe under NACHA rules is 2 banking days from the settlement date of the original entry.
Question 5: A Notification of Change (NOC) is sent by an RDFI when:
- Account information has changed but the entry was still successfully posted (Correct answer)
- An entry is returned for insufficient funds
- An Originator requests account verification before sending entries
- A Receiver formally disputes a transaction with the RDFI
Correct answer: Account information has changed but the entry was still successfully posted
An NOC is sent when the RDFI posts an entry successfully but detects that certain account information (e.g., account number or routing number) needs to be corrected for future entries.
Question 6: Which party initiates a reversing entry in the ACH network?
- The Originator through its ODFI (Correct answer)
- The RDFI on behalf of the Receiver
- NACHA as the network administrator
- The ACH Operator upon error detection
Correct answer: The Originator through its ODFI
Only the Originator, through its ODFI, may initiate a reversing entry to correct an erroneous entry that was already transmitted.
AAP Returns, Reversals, and Adjustments 1
What is the return timeframe for an RDFI to return an unauthorized consumer debit entry using return code R10?