CPP CPP Electronic Payments & ACH 1 — Questions and Answers
Question 1: What does ACH stand for in the context of US payment systems?
- Automated Clearing House (Correct answer)
- Advanced Credit Handler
- Automated Credit Hub
- American Clearing Hub
Correct answer: Automated Clearing House
ACH stands for Automated Clearing House, the US electronic network used for financial transactions such as direct deposits and bill payments.
Question 2: Which organization governs and manages the ACH Network rules in the United States?
- Federal Reserve
- Nacha (Correct answer)
- OCC
- CFPB
Correct answer: Nacha
Nacha (formerly NACHA) is the self-regulatory organization that governs the ACH Network and sets the operating rules.
Question 3: What is the standard ACH settlement window for Same Day ACH transactions?
- Immediate (real-time)
- Within the same business day (Correct answer)
- Next business day
- Two business days
Correct answer: Within the same business day
Same Day ACH transactions settle within the same business day, typically within a few hours of submission.
Question 4: What ACH transaction type is used when a company pulls funds from a customer's bank account?
- PPD Credit
- CCD Debit
- PPD Debit (Correct answer)
- WEB Credit
Correct answer: PPD Debit
A PPD Debit (Prearranged Payment and Deposit Debit) entry is used when a company pulls funds from a consumer's personal bank account under a written authorization.
Question 5: Which ACH Standard Entry Class (SEC) code is used for internet-initiated consumer debit entries?
- PPD
- CCD
- WEB (Correct answer)
- TEL
Correct answer: WEB
WEB (Internet-Initiated Entry) is the SEC code for debit entries initiated via the internet for consumer accounts.
Question 6: What is the maximum dollar amount per transaction for Same Day ACH as of the latest Nacha rule update?
- $25,000
- $100,000
- $1,000,000 (Correct answer)
- $10,000
Correct answer: $1,000,000
Nacha raised the Same Day ACH per-transaction limit to $1,000,000, enabling large B2B and payroll transactions to be processed same-day.
CPP CPP Electronic Payments & ACH 1
What does ACH stand for in the context of US payment systems?