Scott Miller, NCP, ECCHO

Samantha Moody, AAP, Wells Fargo

BECOMING AN AAP OR NCP

▪ This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only

▪ NACHA owns the copyright for the NACHA Operating Rules & Guidelines

▪ The Accredited ACH Professional (AAP) is a registered service mark of NACHA

▪ This material is derived from a collaborative work product developed by NACHA – The Electronic Payments Association and its member Regional Payments Associations

DISCLAIMER

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AGENDA

✓ Benefits of industry certifications✓ Candidates for AAP/NCP✓ Background of AAP and NCP✓ Exam details✓ Preparation and resources✓ Certification fees✓ Continuing education✓ Conclusions

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BENEFITS OF CERTIFICATION PROGRAMS

BENEFITS STAFF BENEFITS EMPLOYERS

▪ Develops people–acquisition of knowledge, skills, and abilities

▪ Distinguishes people–differentiates between proficiencies

▪ Recognizes people–acknowledgement of people who consistently perform to standards

▪ Better defines and develops technical job competencies

▪ Identifies employees and potential employees who have achieved this level of excellence

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CANDIDATES FOR AAP/NCP

Recommended:

Commitment to studying and really learning the subject matter

Interested in becoming an expert

2+ years related experience

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WHAT IS AN AAP?

ACCREDITED ACH

PROFESSIONAL An individual who has a comprehensive knowledge of all areas of ACH, a deep understanding of and experience in one or more specific ACH subjects, and a broad knowledge of concepts that relate to the payments system as a whole.

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BACKGROUND OF AAP

▪ Created in 1993

▪ 332 individuals passed in the exam in 2016 – 45 were UMACHA members

▪ Over 4,000 AAPs nationwide

▪ Since 2000, the number of AAPs has more than doubled

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WHAT IS AN NCP?

NATIONAL CHECK

PROFESSIONAL A person with proven expertise in all aspects of the check payment system, including:

▪ Rules and regulations▪ Operations▪ Fraud and risk mitigation▪ Check products

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▪ Body copy set in Verdana 22pt. Nulla sem lectus, tempus a, fermentum quis, feugiat non, leo.

▪ Bulleted copy set in Verdana 22pt – Bulleted copy set in Verdana 20pt

• Bulleted copy set in Verdana 18pt▪ Bulleted copy set in Verdana 16pt

BACKGROUND OF NCP

▪ Why NCP? – So many changes in last few years– So much to know– Security of the payment system– Customers deserve the best

▪ RPAs brought the idea to ECCHO

▪ Pilot in November 2011, seventh test cycle complete

▪ 736 NCPs

▪ NCPs in every state and Guam, except: RI, NM

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PREPARING FOR CERTIFICATION

▪ Must study to pass the exam, regardless of experience

▪ Amount of time depends on your – Expertise and tenure– Breadth of experience– Familiarity—looking up versus

knowing answer– Ability to take tests– Need to study more/less than

others– Suggest 60+ hours study time or

however long it takes to really know the material

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▪ Knowledge of the ACH Network and comparative payment systems

▪ Knowledge of ACH rules and regulations▪ Technical ACH skills, including operational

requirements▪ Understanding of ACH products and applications▪ Risk management and other policy issues▪ Marketing ACH services▪ Management of electronic payment services▪ Regulation E and other federal requirements

AAP EXAM CONTENT

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AAP EXAM CONTENT

28%

24%15%

15%

10%

8%

Operational Process/Flow

Rules & Regulations

Risk Management

Technical Standards & Formats

General Payment Overview

Marketing & Products

AAP

The AAP exam consists of six sections

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▪ 120 questions – 20 pilot questions are not scored

▪ Multiple choice▪ 3 hours to take the exam▪ Exam results

– Pass/no pass results are provided at the completion of the exam

– Those who pass the exam will receive their AAP certificate and pin in the mail

– Those who do not pass will be mailed a report on general topic areas requiring improvement

▪ The passing score for the exam is not available nor shared with AAP candidates or UMACHA

AAP EXAM

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▪ 120 questions, multiple choice▪ 20 pilot questions

– Not scored– Not determined until Editorial Board meets

▪ Many scenario-based questions – Must apply your knowledge

▪ Fact-based questions▪ 3 hours to take the exam▪ Pass/fail score received via email in June

– Email contains bar charts for each section– NCP certificate and NCP pin by mail– Half price special to retake the exam

NCP EXAM

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NCP EXAM CONTENT

34%

33%

25%

8%Rules, Laws & Regulations

Check Operations

Fraud & Risk Mitigation

Products

The NCP exam consists of four sections

NCP

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NCP EXAM BLUEPRINT

Demonstrate working knowledge of Reg CC, Reg J, UCC Articles 3 & 4, ECCHO Rules, Fed OC3 and sections of NACHA Rules, and Regulation E.

Rules, Laws, and Regulations34%

▪ Eligible items▪ MICR Line Repair▪ Warranties▪ Indeminifications▪ Error resolution,

returns, adjustments▪ Imperfect/Non-

imageable items▪ Indorsements

▪ Presentment▪ Representment▪ Disclosures▪ Funds availability▪ Bank settlement &

finality

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NCP EXAM BLUEPRINT

Demonstrate a comprehensive understanding of all aspects of check operations and key standards.

Check Operations33%

▪ Item processing▪ File control▪ Exception handling▪ Retention, retrieval &

destruction▪ Account statements▪ Check conversion▪ ANSI standards

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NCP EXAM BLUEPRINT

Demonstrate knowledge required to identify fraud and mitigate risk associated with check products and services and to comply with the regulatory requirements, including the UCC articles 3 and 4, BSA/AML, and FFIEC guidance.

Fraud Risk and Mitigation25%

▪ Key provisions or laws, regulations, and guidance

▪ Definitions of types of fraud and risk

▪ Allocation of risk▪ Consumer, bank, and

commercial agreements

▪ Risks associated with RDC and RCCs

▪ Risk mitigation techniques▪ Data security and data

breach▪ Business continuity/

disaster recovery

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NCP EXAM BLUEPRINT

Demonstrate a basic knowledge of the types, benefits, and purpose of correspondent, commercial, and consumer products.

Products8%

▪ Types of checks▪ Check conversion▪ Account reconciliation

products▪ Positive Pay▪ Controlled

disbursement▪ Lock box

▪ Image cash letter▪ Remote deposit capture▪ Float▪ Statements▪ Image retrieval▪ Online and mobile

banking

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PREPARING TO TAKE THE AAP EXAM

▪ UMACHA Core AAP Training Sessions – Getting to Know the SECs for ACH– Framework of International ACH Transactions– Deconstructing the ACH File– Rules & Responsibilities for ODFIs– Rules & Responsibilities for RDFIs– The Ins & Outs of Stop Payments vs. WSUDs– ACH Scales of Justice: How the Rules Settle

Disputes Between Parties– Demystifying Federal Government Payments– Reg CC to Reg Z & Other Payment Regulations– Core Concepts of ACH Risk Management

Check out www.umacha.org for dates and times.

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▪ UMACHA’s AAP Training Program (4 level approach)

▪ Additional resources – ClassMarker review questions (120 multiple choice)– Question of the Week– Additional worksheet activities to apply exam concepts– All materials hosted on UMACHA’s AAP Candidate Resource

webpage

PREPARING TO TAKE THE AAP EXAM

Level 1

In-person or four-part webinar series to help candidates determine where to begin individual studies

Level 2 Level 3 Level 4

Ten webinars offered live and recordings available through exam window (see previous slide for session titles)

Monthly open forum study group calls hosted and recorded by UMACHA education staff

Two-day intensive workshop located in at least three different cities in UMACHA’s territory

(2016: Billings, Fargo, Sioux Falls, Woodbury)

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NCP EXAM PREP TRAINING COURSE

Eleven sessions plus review(s)—typically webinars:

– Check Fundamentals and Check Processing– Regulations – Uniform Commercial Code– Regulations – Reg CC– Check Products– Image Exchange: Rules and Agreements – Part I– Image Exchange: Rules and Agreements – Part II– Image Exchange: Processes– Exceptions – Returns and Adjustments– Standards and Formats– Fraud, Risk, and Risk Mitigation – Part I– Fraud, Risk, and Risk Mitigation – Part II– Exam Review Sessions

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UMACHA TRAINING PROGRAM

▪ Payment professionals will provide you with the most up-to-date materials and information

▪ View webinar presentations, allowing more of your staff to attend

▪ Increase check knowledge, skills, and value

▪ All classes have been recorded

▪ Eleven sessions– Pre-recorded, can be accessed

as many times as needed– Quizzes and resources for each

section– Two additional virtual study

groups (total of 13)

▪ Hints and tips

▪ Two-day in-person review with United Bankers’ Bank– Review of core concepts– Activities and hands on

application of concepts

NCP TRAINING

ON-DEMAND

BENEFITS OF UMACHA’S

PREPARATION SERIES

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NCP STUDY AIDS

▪ ECCHO study aids—Free when you register for the exam– NCP Roadmap– PREP Guide– Question of the Day– JumpStart Reading Program– Links to Check References– NCP Guide handbook and program

▪ Other study aids– NCP exam prep training course – UMACHA– NEACH’s CheckPro– Check training options from UMACHA’s webinar

library– EPCOR’s Check 101 flashcards

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STUDY SUGGESTIONS

▪ Start early

▪ Sign up for exam prep training class– Don’t multitask– Turn off emails and phones– Ask questions

▪ Read all suggested materials– Highlight important parts– Rewrite/restate important points– Make notebooks

▪ Buy/make flashcards and review often

▪ Study with others

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TESTING INFORMATION

AAP NCP

120 multiple choice questions (100 scored)

Pass/Fail with result at test center

Pass/Fail with result in several weeks via email

Proctored exam at PSI Test Centers across U.S.

Proctored exam at PSI Test Centers across U.S.

Testing window:October 9 – 28, 2017

Testing window:April 21 – May 12, 2017

120 multiple choice questions (100 scored)

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CERTIFICATION FEES

AAP

NCP

▪ $495 for NACHA members (UMACHA members) – Membership code available on UMACHA’s Members Only

webpage or by calling (800) 348-3692

▪ Online registration throughwww.nacha.org/events/training-accreditation-programs– Registration deadline is typically mid-September

timeframe

▪ $400 for ECCHO members ▪ $500 for non-ECCHO members

▪ Online registration throughwww.eccho.org/ncpc– Registration deadline is March 30, 2018

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CONTINUING ED: KEEPING YOUR AAP/NCP

Accreditation for 5 years

AAP NCP

Accreditation for 5 years

– Continuing education credits (CEC)

✓ 60 CEC in 5 years

✓ Max of 20 CEC/year

✓ Renew in 5 year incrementsOR

– Complete AAP exam every 5 years

– Continuing education

✓ 50 credit hours in 5 years plus

✓ 3 ECCHO 90 minute workshops

✓ Max of 30 credits/year

✓ Renew in 5 year incrementsOR

– Complete NCP exam every 5 years

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WHY SHOULD YOU BECOME AN AAP?

▪ AAPs bring a wide range of experience and a critical knowledge base that is a valuable asset to any organization

▪ AAPs have a broad foundation of technical and regulatory expertise for ACH and other payment systems

▪ You will be recognized throughout the payments industry as a subject matter expert

▪ The AAP designation distinguishes you as the “go-to” person within your organization and throughout they payments industry

▪ You have taken the extra step to become an expert in the field

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AAP IS IMPORTANT AND REWARDING

▪ In addition to helping you achieve personal and professional goals, becoming an AAP delivers a strong message to employers and others in the payments industry that you are dedicated to your profession and a recognized expert in your field

▪ AAPs are eligible for special programs, event rates, and networking opportunities throughout the industry

▪ Becoming an AAP makes you part of a network of more than 4,000 payments professionals who have proven their dedication to the payments industry

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WHY NCP IS IMPORTANT

▪ Critical for payments to be accurate and exceptions processed correctly to avoid risk

▪ There are so many things to know in check:– Did you know that no regulation governs the

exchange of check images?– Do you know to which bank you should return a

duplicate? Do you know which warranty applies to duplicates?

– Are you comfortable with handling exceptions?– Do you know where to find the answers?

▪ To help you become a check expert

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VALUE OF NCP | KNOWLEDGE IS POWER

▪ It’s good for the payments industry – Security and accuracy

▪ It’s good for your organization – Reduced risk—tangible examples reported– Respected by auditors– Appreciated by customers

▪ It’s good for you– Be recognized for your expertise– Be knowledgeable—great learning opportunity– Advance your career

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NEXT STEPS

▪ Register early for the exam

– To get study aids– To begin study program early

www.nacha.org/events/training-accreditation-programs

www.eccho.org/ncpc

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Thank you for your time!

For more info:

Samantha Moody, AAP, Wells Fargosamantha.j.moody@wellsfargo.com | 612-667-5208

Scott Miller, NCP, ECCHOsmiller@eccho.org | 406-442-4994

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