Accredited ACH Professional (AAP) Practice Exam

What types of information can be found in an ACH Output file?

1. Only credits and debits

2. Credits and returns

3. Returns, prenotes, and credits

4. Credits, debits, returns, prenotes, dishonored returns, and Death Notification Entry

The correct answer is: Credits, debits, returns, prenotes, dishonored returns, and Death Notification Entry

The correct answer encompasses a comprehensive range of information that can be included in an Automated Clearing House (ACH) Output file. An ACH Output file can contain not only the standard transactions such as credits and debits but also several other entries that are crucial to the processing of ACH transactions. Including returns is essential since they are transactions that indicate a reversal of an original entry, often due to insufficient funds or closed accounts. Prenotes are also part of the output file as they serve as zero-dollar transactions used to verify the accuracy of the recipient’s bank account information before actual funds are transferred. Dishonored returns refer to transactions that could not be completed due to various reasons, further emphasizing the importance of capturing all necessary details in the output file. Additionally, the inclusion of Death Notification Entries is significant as it notifies financial institutions when they need to take specific actions regarding the account of a deceased individual. This expansive coverage ensures that financial institutions can handle various situations efficiently, maintain accurate records, and comply with regulatory requirements, making option D the most comprehensive and correct choice.