Accredited ACH Professional (AAP) Practice Exam

How long in advance must an Originator notify the Receiver of a change in the amount of a recurring debit?

1. 5 calendar days

2. 7 calendar days

3. 10 calendar days

4. 15 calendar days

The correct answer is: 10 calendar days

The correct answer is 10 calendar days. According to the NACHA Operating Rules, an Originator is required to provide the Receiver with a notification at least 10 calendar days in advance when there is a change in the amount of a recurring debit. This notification period is crucial because it gives the Receiver sufficient time to adjust their finances accordingly. The expectation is that the Receiver should be aware of any changes to scheduled transactions ahead of time to avoid potential issues such as overdrafts or unexpected account balances. Understanding the notification requirement is important for maintaining compliance with NACHA rules and ensuring good customer relations. The other options—5, 7, and 15 calendar days—do not meet the regulatory standard set forth for informing the Receiver about changes in the recurring debit amounts. Thus, the 10-day notification period is essential in managing ACH transactions effectively.