20 Questions
Which law governs unauthorized checks posted to consumer accounts?
Uniform Commercial Code (UCC)
What is the time frame for a consumer to report an unauthorized ACH debit under Regulation E?
60 days
What does Regulation E impose on the consumer's financial institution with respect to error resolution procedures and refunds of unauthorized payments?
Full obligations
What is the customer's right for an unauthorized check under the UCC?
Full right
Who is generally accountable for a check under the UCC?
The paying financial institution
Which financial institution is responsible for unauthorized checks under the UCC?
The paying financial institution
Which financial institution is responsible for unauthorized RCCs under the UCC?
The customer's financial institution
What did the Federal Reserve Board amend in 2006 to reallocate the risk of loss resulting from unauthorized RCCs?
Regulation CC
What is the time frame for a financial institution to make a claim against the transferring financial institution for an unauthorized RCC?
12 months
What is the liability for losses attributable to unauthorized RCCs under Regulation J?
Depository financial institution
Which one of the following statements about RCCs is true?
RCCs are created by credit card companies, utility companies, or telemarketers.
What is the risk associated with RCCs?
RCCs can be used to obtain unauthorized transactions.
How can a fraudster obtain an account holder's account number for RCC transactions?
By tricking the account holder into providing the information over the telephone or the Internet.
What is the role of a financial institution in relation to RCCs?
A financial institution is responsible for an effective system of internal controls and ongoing account monitoring related to RCCs.
How are RCCs processed for an unauthorized transaction?
An account holder receives a re-credit for an unauthorized transaction through the ACH network.
What is the difference between RCCs and electronic check conversion?
RCCs do not require authorization from the account holder.
What information does an RCC bear in place of the signature?
The account holder's printed or typed name.
How can an account holder authorize the creation of an RCC?
By providing the appropriate information, including the MICR data.
What are common examples of RCCs?
RCCs created by credit card companies, utility companies, or telemarketers.
Which rules govern ACH debits to consumer accounts?
The Electronic Fund Transfer Act and Regulation E.
Test your knowledge on Remote Check Capture (RCC) and its relationship to electronic check conversion. Learn about the authorization process, signature requirements, and how account holders can authorize the creation of RCCs.
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