Accredited ACH Professional (AAP) Practice Exam

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How many banking days does the ODFI have to transmit Dishonored Returns?

1 Banking Day
2 Banking Days
3 Banking Days
5 Banking Days

The correct answer is: 5 Banking Days

The correct answer is based on the National Automated Clearing House Association (NACHA) rules regarding the handling of dishonored returns. The Originating Depository Financial Institution (ODFI) must transmit a dishonored return within five banking days after the return is received. This timeline is critical for maintaining the integrity of the ACH (Automated Clearing House) network and ensuring that all transactions are settled fairly and promptly. Dishonored returns occur when an ACH item cannot be processed due to insufficient funds or other reasons. The five banking days provide a structured timeframe for ODFIs to manage these returns effectively, ensuring that parties involved in transactions are informed of any issues in a timely manner. In other contexts, shorter or longer timeframes might apply, which is why understanding the specific regulations set forth by NACHA regarding dishonored returns is essential for any professional involved in ACH transactions.