NCP EXAM Operations Questions with Complete Solutions
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Course
NCP
Institution
NCP
Point of capture - Answer-Image ATM, Vault, lockbox, front counter, branch image capture, back counter, image CL from an exchange partner, RDC from customers
Item capture - Answer-Fed and most rules require full field MICR. ECCHO, permits partial by agreement.
Quality control - Answer-IQA = I...
NCP EXAM Operations Questions with
Complete Solutions
Point of capture - Answer-Image ATM, Vault, lockbox, front counter, branch image
capture, back counter, image CL from an exchange partner, RDC from customers
Item capture - Answer-Fed and most rules require full field MICR. ECCHO, permits
partial by agreement.
Quality control - Answer-IQA = Image Quality Analysis - interrogates electronic items.
Also called CODE LINE MATCH: ensures that item's electronic data record (MICR
information) matches the visual representation of the orginal checks MICR line. Some
issues include: too light, too dark, streaks, excessive skew, piggyback.
Duplicate item detection - Answer-Item level control. True duplicates result in exception
item (may be returned or adjusted). What is the industry practice? Timing will determine.
After midnight deadline would have to adjust. If prior to midnight deadline, can return.
Know operational duplicates should be resolved as adjustments. When the cause is
unknown, fraud may be involved...return would protect legal rights of Paying Bank
("right of return")
Proof and Balancing - Answer-Proof = encode. Balance to deposit ticket. Encode
amount and missing MICR fields. Correct customer errors as needed, and balance the
transactions.
Clearing (including ACH Conversion) - Answer-
Bulk File - Answer-filing and temporary retention system. Process occurs at end of day
after capture, balancing, and posting. Still may be required for customers with special
statement requirements.. Resort any physical items for statement rendering.
Posting - Answer-On us items get uploaded into internal systems while transit work gets
ready for dispatch. Part of end of day process. Send all information about items
processed that day to DDA system to attempt to post to customer accounts. Deposited
credits and onus checks.
Reconcilement - Answer-
Bank Settlement - Answer-Facilitates the exchange of FUNDS between banks for the
value of cash letters sent and received. Remember that under Reg CC you are making
a warranty that all settlement will accurately reflect the actual value of the items sent
and received. Multiple presentments and added clearing channels make reconcilement
more complicated, as there could be more GLs to reconcile...also more items to
reconcile.
, File Control - Answer-
Rejected items and files - Answer-Verify X9 format, control totals, check for duplicate
file. File - things to think about: is it a late file - normally you get a daily file from a
partner at 2:00 and you didn't receive a file. Maybe you normally receive one file and
today you received two. Does the file exceed the average item or dollar amount
Transmissions and acknowledgement - Answer-
Exception Handling - Answer-
Exception disposition - Answer-
Research - Answer-
Returns - Answer-Outgoing returns: Must identify the return and the reason for the
return. Large dollar notification. You have two clocks to concern with: UCC to get the
item out by midnight on the day after presentment and Reg CC to get the item to the
depositary bank before 4:00 local on the second business day after the banking day on
which the check was presented to the paying bank.
Adjustments - Answer-
Retention, retrieval, destruction - Answer-
Account Statements - Answer-1) safekeeping (check number and dollar amount). 2)
enclosure statement (physical paper and other enclosures. 3) online statements and 4)
image statements (images of paid items)
Application of ACH file formats for check conversion - Answer-
Application of ANSI standards - Answer-
X9.100-140 From Reg CC - Answer-Substitute check standard = Annexes A,B, and C
are normative and considered a part of the standard. A = Return Reason Codes, B =
Check or IRD Conversion, C = Conversion table
X9.100-160 - Answer-MICR Standard with two parts 1) placement and location and 2)
EPC field such as "2, 4, 5"
X9.100-187 - Answer-Image exchange standard. Cash letter structure that supports the
exchange of posting data only, posting data and check images, posting data followed by
additional data and image file. Utilizes UCD as a guideline for industry consistency.
Standard has a variable record format.
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