APRP VOCAB 2024-2025 EXPLAINED COMPLETE
APRP VOCAB 2024-2025 EXPLAINED
COMPLETE QUESTIONS
ACH -Correct Answer ✔Automated Clearing House
ACH Network -Correct Answer ✔Backbone for the electronic movement of money and
data, a processing and delivery system that provides for the distribution and settlement
among financial institutions of electronic credits and debits, as well as, non-monetary
entries with payment related information
ACH Operator -Correct Answer ✔Central clearing facility that receives entries from the
ODFIs and distributes the entries to the appropriate Receiving Depository Financial
Institution
ACH Policy -Correct Answer ✔Every financial institution should have this policy that
outlines the financial institution's goals and objectives for its ACH program. The policy
should have the approval of the board of directors. Some elements to be considered or
be addressed include:
• A general statement that the organization will process ACH in accordance with U.S.
law and the NACHA Operating Rules
• Compliance with NACHA Operating Rules
• Outline of the types of ACH products the FI will offer
• Any types of prohibited/restricted originators
• Internal controls practices to address the risk inherent to offering certain ACH products
• Third Party Senders relationships should be addressed
• ACH Receipt
• ACH Origination
• OFAC Requirements"
Addressing -Correct Answer ✔Automated means to route/direct a transaction using a
set of data often employing a directory service.
Alternate channel confirmations -Correct Answer ✔Process of encouraging customer
participation in fraud detection and increase customer confidence by sending
confirmations of certain high-risk activities through additional communication channels
such as the telephone, e-mail, or traditional mail
AML -Correct Answer ✔Anti- Money Laundering-
Ancillary Risk -Correct Answer ✔A consequence or by-product of not managing credit,
operational, fraud, systemic or compliance Risks
APRP VOCAB 2024-2025 EXPLAINED COMPLETE
, APRP VOCAB 2024-2025 EXPLAINED COMPLETE
Android Pay -Correct Answer ✔A digital wallet platform developed by Google to power
in-app and tap-to-pay purchases on mobile devices, enabling users to make payments
with Android phones, tablets or watches. It is an open loop system
Anomaly Detection -Correct Answer ✔A technique that compares current behavior with
established patterns of legitimate behavior and looks for anomalies
API -Correct Answer ✔A set of specifications, standards or conventions that enable
programs to exchange information
Apple Pay -Correct Answer ✔A mobile payment and digital wallet service by Apple Inc.
that lets users make payments using an iPhone, Apple Watch, iPad or Mac. It is an
open loop system.
Audit Policy -Correct Answer ✔A financial institution's policy that should address the
following objectives, whether or not the audit functions are handled in-house or
outsourced: Policy Objective; Scope of work; Authority; Auditing standards;
Outsourcing/third parties; External auditor restriction
Authentication -Correct Answer ✔"The explicit instructions, including: timing, amount,
payee, source of funds and other conditions, given by the payer to the payee to transfer
funds on a one-time or recurring basis"
Address Verification System (AVS) -Correct Answer ✔Verify a cardholder's billing
address and other pertinent information, used for mail, telephone, and Internet
transactions
Basel III Regulatory Capital -Correct Answer ✔A comprehensive set of reform
measures, developed by the Basel Committee on Banking Supervision (BCBS), to
strengthen the regulation, supervision, and risk management of the banking sector,
including both liquidity and capital reforms.
Business Continuity Planning (BCP) -Correct Answer ✔Develop, implement, and test
appropriate disaster recovery, in order to maintain acceptable retail payment-related
customer service levels
Business Impact Analysis (BIA) -Correct Answer ✔A flow analysis that involves an
assessment and prioritization of those business functions and processes that must be
recovered. should also consider the impact of legal and regulatory requirements. should
also estimate the maximum allowable downtime for critical business functions and
processes and the acceptable level of losses (data, operations, financial, reputation,
and market share) associated with this estimated downtime
APRP VOCAB 2024-2025 EXPLAINED COMPLETE
, APRP VOCAB 2024-2025 EXPLAINED COMPLETE
Biometrics -Correct Answer ✔Methods include voice scanning and iris and retinal
imagingfinger scan linked to his or her personal identification information.
Capital adequacy -Correct Answer ✔Refers to the amount of capital a financial
institution has to hold as required by its regulator
Card Products -Correct Answer ✔Credit cards, Debit cards and Prepaid cards
CDD -Correct Answer ✔Customer Due Diligence
Consumer Financial Protection Bureau (CFPB) -Correct Answer ✔Rule-making
authority and, with respect to entities within its jurisdiction, enforcement authority to
prevent unfair, deceptive, or abusive acts or practices in connection with any transaction
with a consumer for a consumer financial product or service, or the offering of a
consumer financial product or service
Challenge Questions -Correct Answer ✔Used as a backup in the event that primary
logon authentication technique becomes inoperable or presents an unexpected
characteristic. Can include "out-of-wallet' questions, which are questions that a user
only knows and a fraudster cannot obtain just with stolen identity.
Change Control Policy -Correct Answer ✔Addresses potential changes to the operating
environment
Charge-backs -Correct Answer ✔A demand by a credit-card provider for a retailer to
make good the loss on a fraudulent or disputed transaction
Check/Remote Deposit Capture (RDC) Policy -Correct Answer ✔Sets forth policies and
procedures adopted by the FI in regards to risks associated with its offering of RDC
services to its accountholders
CIP -Correct Answer ✔Customer Identification Program
Closed Loop Network -Correct Answer ✔Provides payment services directly to
merchants and cardholders by the owner of the network without involving financial
institutions as intermediaries. American Express and Discover are two examples.
Compliance Risk -Correct Answer ✔Party to a transaction fails to comply, either
knowingly or inadvertently with payment system rules and policies, regulations and
applicable U.S. and state law
Compliance risk management -Correct Answer ✔Be aware of all payment system rules,
policies, regulations and applicable U.S. and state law
APRP VOCAB 2024-2025 EXPLAINED COMPLETE
