AAP and NCP:Step Up to the Plate with

Payments Certification

Wendy Wishon, AAP, NCP, EPCORJenny Johnson, NCP, ECCHO

Disclaimer – WACHA AAP• 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.

Agenda

• Benefits of Industry Certifications• Background of AAP and NCP• Exam Details• Training and Study Information• Continuing Education• Conclusions

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Benefits of Certification Programs• Provides a valuable learning experience

• Supports a continuing education process

• Delivers proven expertise that auditors appreciate

• Demonstrates expertise to customers

• Improves products & services for customers

• Provides recognition

• Improves FIs’ support of the payment system

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Candidates for AAP/NCP

• 2+ years related experience

• Commitment to studying and really learning the subject matter

• Interested in becoming an expert

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What is an AAP?

An Accredited ACH Professional (AAP) is 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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AAP Background

• Created in 1993

• 363 individuals passed the exam in 2014

• More than 4100 AAPs nationwide

–258 are WACHA members

• Number of AAPs more than doubled since 2000

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What is an NCP?

• National Check Professional (NCP)

• 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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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

• WACHA and others brought the idea to ECCHO• Pilot in November 2011• About to open fifth test window• Already have 416 NCPs

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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 material10

AAP Study References• NACHA Operating Rules & Guidelines• Accredited ACH Professional Handbook – electronic

format– Link supplied upon registration with NACHA for AAP

Exam• ACH Compliance Manual• Risk Management Handbook • Green Book

www.fms.treas.gov/greenbook• Regulations• The AAP Study Kit-Offered by WACHA

Info at the end of this presentation*This is not an all inclusive list

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AAP Exam Content

• 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

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AAP Exam Content• AAP Exam Consists of 6 Sections-General Payment Overview (10%)

-Marketing & Products (8%)

-Risk Management (15%)

-Rules & Regulations (24%)

-Operational Process/Flow (28%)

-Technical Standards & Formats (15%)

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AAP Blueprint

• 120 questions–20 Pilot questionsNot scored

• Multiple choice• 3 hours

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AAP Blueprint

• Exam Results– Official 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

The Passing Score for the Exam is not available nor shared with the AAP candidates or WACHA

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NCP ReferencesRegulation CC (Reg CC) - Availability of Funds and Collection of CheckUniform Commercial Code (UCC) Article 3Uniform Commercial Code (UCC) Article 4Universal Companion Document - UCDFederal Reserve Operating CircularECCHOTM RulesFFIEC - Supervisory Guidance for Remote Deposit CaptureFFIEC: Authentication in an Internet Banking Environment FFIEC: Supplement to Authentication in an Internet Banking Environment FFIEC: Information SecurityFFIEC: Retail Payment SystemsFinCEN Advisory–FIN-2012-A010 Regulation E (Reg E) - Electronic Fund TransfersRegulation J (Reg J) - Collection of Checks and Other Items by Federal ReserveTreasury Securities & ProgramsBank Secrecy Act/Anti-Money Laundering (BSA/AML) 16

NCP Exam Content Blueprint34% - Rules, Laws, and Regulations

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

Eligible itemsMICR line repairWarrantiesIndemnificationsError resolution, returns, adjustmentsImperfect/Non-imageable itemsIndorsementsPresentmentRepresentmentDisclosuresFunds availabilityBank settlement & finality

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NCP Exam Content Blueprint33% - Check OperationsDemonstrate a comprehensive understanding of all aspects of check operations and key standards.

Item processingFile controlException handlingRetention, retrieval, and destructionAccount StatementsCheck conversionANSI Standards

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NCP Exam Content Blueprint25% - Fraud and Risk Mitigation

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.

Key provisions of laws, regulations and guidanceDefinitions of types of fraud and riskAllocation of riskConsumer, bank, and commercial agreementsRisks associated with RDC and RCCsRisk mitigation techniquesData security and data breachBusiness continuity/disaster recovery

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NCP Exam Content Blueprint8% - ProductsDemonstrate a basic knowledge of the types, benefits, and purpose of correspondent, commercial and consumer products.

Types of checks Check conversion Account reconciliation productsPositive PayControlled disbursementLockboxImage cash letterRemote deposit captureFloatStatementsImage retrievalOnline and mobile banking

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NCP Exam• 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– ½ price special to retake exam

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Preparing To Take The AAP Exam

• WACHA Training Sessions –ACH Rule Book–RDFI Roles & Responsibilities–ODFI Roles & Responsibilities–File Formats–RDFI Exception Handling–Regulation Sessions-Reg. E/Regulations Review–Risk Related sessions–Government Payments & ACH

• Check out www.WACHA.org for dates & times *This is not an all inclusive list

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Preparing To Take The AAP Exam

• 2.5 Day AAP Review-In Person–September 14-16, 2015–Great Wolf Lodge-Wisconsin Dells

–WACHA AAP Offer*If you take all of the recommended classes AND

you purchase WACHA’s AAP Offer* and you do not pass the exam, WACHA will reimburse you for the $475 exam registration fee!**

*See next slide**Some restrictions apply, email lkohlmann@wacha.org for details

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WACHA’s AAP OfferThe AAP Complete Package includes: Seven AAP study publications ($338 value/non-member $515)WACHA’s AAP Study Kit ($150 value/non-member $250) A coupon to attend WACHA’s 2.5 day in person AAP Review class in

September ($500 value/non-member $700) Coupons to attend two recommended AAP sessions of your choice ($398

value/non-member $598)MEMBERS: The total value of this offer is $1386 but you can purchase it for

$1000 using this special offer. This is a $386 savings for members.Non-Members: This is a $2063 value which you can purchase for $1900

(Save $363)**To complement your AAP preparations, purchase the Gold Education Club to cover

the five additional training sessions for only $875 (save an additional $292) (not valid for non-members)

Visit www.wacha.org for more information

AAP Study Aids

• ACH Rules book• AAP Handbook• NACHA’s Risk Management Handbook• NACHA’s Marketing Handbooks• ACH Compliance Manual• Revised UCC-4A and the ACH Network• Greenbook

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AAP Study Aids

• AAP Flashcards• AAP Review Course• AAP Study Buddy Program• NACHA’s The Payments Institute• WACHA website

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NCP Exam Prep Training Course11 Sessions plus review(s)—typically webinars:

Check Fundamentals and Check ProcessingRegulations - Uniform Commercial CodeRegulations - Regulation CCStandards and FormatsImage Exchange: Rules and Agreements - Part IImage Exchange: Rules and Agreements - Part IIImage Exchange: ProcessesExceptions - Returns and AdjustmentsCheck ProductsFraud, Risk, and Risk Mitigation - Part IFraud, Risk, and Risk Mitigation - Part IIExam Review Session(s)

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NCP Training Partners

•WACHA• EPCOR• EastPay• MACHA• NEACH• PaymentsFirst• SFE• SWACHA• The Clearing House• The Payments Authority• UMACHA• WACHA• WesPay

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WACHA Training ProgramBenefits of WACHA’s

Preparation Series: 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-It’s not too late to sign up for this year’s exam!

Program Includes:11 Webinars

-Check Fundamentals -Uniform Commercial Code (UCC)-Regulation CC-Check Products -Image Exchange (3 parts)-Exceptions-Returns & Adjustments-Standards and Formats-Fraud, Risk and Risk Mitigation (2 parts)

Additional In-person Review

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ECCHO Study Aids

• Free When Register for the Exam:–NCP Roadmap–PREP Guide–Question of the Day–JumpStart Reading Program–Links to Check References

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ECCHO Study Aids

• NCP exam prep training course• NCP Guide handbook and program• Check training options • ECCHO website• EPCOR’s Check 101 Flash Cards

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Study Suggestions

• Start early• Sign up for exam prep training class

–Don’t multi-task–Turn off emails and phones–Ask questions

• Read all suggested materials–Highlight important points–Re-write/restate important points–Make notebooks

• Buy/make flashcards and review often• Study with others

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Testing Information

AAPOctober 12 – 31,

2015

120 Multiple Choice Test

Questions / 100 Scored

Pass / Fail with Result at Test

Center

Proctored Exam at PSI Test

Centers across US

NCPApril 16 – May 7,

2016

120 Multiple Choice Test

Questions / 100 Scored

Pass /Fail with Result in Several Weeks via Email

Proctored Exam at PSI Test

Centers across US

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Certification Fees–AAP

$475 for NACHA members (WACHA members)o Membership code = gZ!!EQ4H

Online registration through www.nacha.org/events/training-accreditation-programs

o Registration deadline is September 18, 2015

–NCP$400 for ECCHO members$500 for non-ECCHO membersOnline registration www.eccho.org/ncpc

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Continuing Ed: Keeping Your AAP/NCP

• Accreditation for 5 years– Continuing Education

Credits (CEC)60 CEC in five yearsMax of 20 CEC per yearRenew in 5 year

incrementsOR

– Complete AAP Exam every five years

• Accreditation for 5 years– Continuing Education

• 50 credit hours in five years plus

• 3 ECCHO 90 minute workshops

• Max of 30 credits per year• Renew in 5 year

incrementsOR

– Complete NCP exam every five years

Accredited ACH Professional National Check Professional

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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 the payments industry

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

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AAP is Important

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

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AAP is Rewarding

• 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? Two sets of rules?

– Do you know which bank you should return a duplicate to? 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 expert39

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—getting learning opportunity –Advance your career

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But Don’t Take Our Word for it…

AAP Testimonial“Obtaining the AAP certification is not only a personal career accomplishment, it also demonstrates an unsurpassed level of commitment and excellence in payment knowledge. The AAP exam encompasses all aspects of electronic payment system rules and the continuous education program adds the assurance that AAPs are staying abreast of industry changes.”

Patty Edds, AAPCapital One

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NCP Testimonial“I have been in Check Processing for 20 years and within three months of receiving my NCP Certification I was promoted to Vice President. It makes me proud to be recognized as a check professional. I have updated procedures and bank policies to make sure the process is following the rules and regulations. I am now doing all the training/updates within my bank to all employee’s concerning Check/Image Rules and ACH. If you are up to the challenge and are ready to take it to the next level--Become an NCP!”

Brenda Truett, NCPVice PresidentRedding Bank of Commerce

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AAP Testimonial

“The AAP certification is a standard of excellence for ACH Network participants. AAPs help financial institutions and companies improve their operational processes, ensure compliance and reduce risk.”

Ann-Marie Bartels, AAP, CEOEPCOR

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NCP Testimonial“I’ve been in the financial services industry for nearly 22 years and it’s astonishing how much the payments industry has changed since the introduction of Check 21. The NCP program has been a great way to broaden my business acumen on a variety of topics and trends and keep me abreast of industry rules and regulations as well as fraud and risk mitigation. I really enjoyed the learning experience and have already recommended it to my peers!”

Bev Federico, NCP, Sr. Ops Manager, Bank of America

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AAP Testimonial

“Examiners view having AAPs on staff as extremely important. AAP is the one certification that regulators view as the payments’ industry standard for accreditation and ongoing education.”

Tony DaSilva, AAP, CISAFederal Reserve Bank of Atlanta

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NCP Testimonial“As a compliance professional, studying for the NCP prepared me not only for the exam but provided me with excellent materials and information that I continue to use today. I would suggest this certification to anyone who has an interest in developing a greater understanding of check payment systems.”

Charla Tompkins, NCCO, AAP, NCPNavy Federal Credit Union

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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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Thanks for Your TimeFor More Info:

Wendy Wishon, AAP, NCP, EPCORwendyw@epcor.org or 816.595.7602

Jenny Johnson, NCP, ECCHOjjohnson@eccho.org or 770.452.0961

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