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Free AFPP Practice Questions

10 free, exam-style Accredited Faster Payments Professional (AFPP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free AFPP practice test to study every exam domain.

Question 1

A regional bank is configuring its FedNow Service participation in May 2026. According to current FedNow rules, what is the maximum per-transaction credit transfer limit the network permits, and what is the default participant limit a bank must actively raise to send larger payments?

  1. Network maximum $1,000,000; default participant limit $100,000
  2. Network maximum $10,000,000; default participant limit $500,000
  3. Network maximum $10,000,000; default participant limit $100,000
  4. Network maximum $500,000; default participant limit $25,000
Show answer & explanation

Correct answer: C - Network maximum $10,000,000; default participant limit $100,000

Question 2

A FedNow Sending Participant discovers that a $250,000 payment was originated based on a fraudulent payment instruction. The original transaction was already accepted and is final and irrevocable. To request that the receiving FI return the funds, which ISO 20022 message should the Sending Participant transmit?

  1. pacs.004 - PaymentReturn
  2. camt.055 - CustomerPaymentCancellationRequest
  3. camt.056 - FIToFIPaymentCancellationRequest
  4. camt.029 - ResolutionOfInvestigation
Show answer & explanation

Correct answer: C - camt.056 - FIToFIPaymentCancellationRequest

Question 3

An RDFI receives a Same Day ACH credit entry processed in the second settlement window (2:45 p.m. ET submission cutoff, 5:00 p.m. ET settlement). Per Nacha Operating Rules, by what time must the RDFI make the funds available to the Receiver?

  1. 9:00 a.m. RDFI local time on the settlement date
  2. 5:00 p.m. RDFI local time on the settlement date
  3. End of the RDFI's processing day on the settlement date
  4. Immediately upon receipt of the entry from the ACH Operator
Show answer & explanation

Correct answer: B - 5:00 p.m. RDFI local time on the settlement date

Question 4

An RTP Funding Participant noticed its prefunded position at the Federal Reserve Bank of New York joint account is approaching the low watermark on a Friday afternoon. Why must this institution proactively replenish its prefund position BEFORE the weekend, rather than waiting until additional liquidity is needed Saturday morning?

  1. RTP rules prohibit any prefund movements during weekend hours
  2. Fedwire Funds Service - the only channel for funding the RTP joint account - is closed on weekends and Federal Reserve holidays
  3. The Federal Reserve Bank of New York requires 48-hour advance notice for all prefund changes
  4. TCH automatically suspends Funding Participants whose positions hit the low watermark
Show answer & explanation

Correct answer: B - Fedwire Funds Service - the only channel for funding the RTP joint account - is closed on weekends and Federal Reserve holidays

Question 5

On a Saturday evening, a consumer is the victim of a romance scam and authorizes a $5,000 Zelle payment to a fraudster. The next morning, the consumer reports the incident to their bank and demands reimbursement, citing Regulation E. Under current U.S. law as of May 2026, who bears the loss?

  1. The consumer's bank, because Regulation E mandates reimbursement of all unauthorized electronic fund transfers
  2. Early Warning Services as the network operator, under the December 2024 CFPB consent decree
  3. The consumer, because Regulation E's protections for unauthorized EFTs do not apply to payments the consumer affirmatively authorized, even when induced by fraud
  4. Split equally between the consumer's bank and the receiving bank under UCC Article 4A loss-sharing provisions
Show answer & explanation

Correct answer: C - The consumer, because Regulation E's protections for unauthorized EFTs do not apply to payments the consumer affirmatively authorized, even when induced by fraud

Question 6

A faster payments compliance officer is reviewing the financial institution's Customer Identification Program (CIP) procedures under Section 326 of the USA PATRIOT Act (31 CFR 1020.220). Which of the following is NOT a required CIP element that must be obtained from a customer at account opening?

  1. Name
  2. Date of birth (for individuals)
  3. Telephone number
  4. Identification number (TIN, SSN, EIN, passport, or alien identification)
Show answer & explanation

Correct answer: C - Telephone number

Question 7

A core processor is preparing a technical training session on messaging standards across U.S. payment rails. As of May 2026, which of the following rails does NOT use ISO 20022 messaging?

  1. FedNow Service
  2. The Clearing House RTP Network
  3. Fedwire Funds Service (post-July 14, 2025)
  4. Same Day ACH
Show answer & explanation

Correct answer: D - Same Day ACH

Question 8

A consumer initiates a FedNow Customer Credit Transfer that is later discovered to contain a computational error by the sending FI. The transaction implicates BOTH Regulation E (because the sender is a consumer) and UCC Article 4A (incorporated through Regulation J Subpart C for FedNow). When the two frameworks would produce conflicting outcomes on error resolution, which framework takes primacy?

  1. UCC Article 4A, because it is incorporated by reference into Regulation J Subpart C
  2. Regulation E, because EFTA expressly preempts UCC Article 4A to the extent the EFTA applies
  3. The framework specified in the FI's customer agreement governs
  4. Whichever framework provides the FI with the lower liability exposure
Show answer & explanation

Correct answer: B - Regulation E, because EFTA expressly preempts UCC Article 4A to the extent the EFTA applies

Question 9

A sender originates a commercial credit transfer naming 'ABC Corporation' as the beneficiary but provides an account number that actually belongs to 'XYZ LLC.' The beneficiary's bank credits the account associated with the account number provided and has no actual knowledge of the name-account mismatch. Under UCC Article 4A §4A-207(b)(1), is the beneficiary's bank's reliance on the account number proper?

  1. No - the beneficiary's bank must investigate any name-account discrepancy before crediting
  2. No - the beneficiary's bank must reject any payment order where the name and account number do not match
  3. Yes - the beneficiary's bank may rely on the account number, regardless of name mismatch, unless it has actual knowledge of the discrepancy
  4. Yes, but only if the sender provides written confirmation of the account number within two business days
Show answer & explanation

Correct answer: C - Yes - the beneficiary's bank may rely on the account number, regardless of name mismatch, unless it has actual knowledge of the discrepancy

Question 10

A FedNow participant needs to transfer liquidity to its Master Account at 11:00 p.m. ET on a Tuesday using the FedNow Liquidity Management Transfer (LMT). What is the maximum permissible LMT amount, and is this transfer permitted at this time?

  1. Maximum $1,000,000; transfer not permitted because LMT operates only during standard business hours
  2. Maximum $10,000,000; transfer is permitted because the LMT processing window includes 7:00 p.m. ET to 7:00 a.m. ET on weekdays
  3. Maximum $10,000,000; transfer not permitted because LMT operates only on weekends and Federal Reserve holidays
  4. Maximum $500,000; transfer is permitted 24x7x365 with no window restrictions
Show answer & explanation

Correct answer: B - Maximum $10,000,000; transfer is permitted because the LMT processing window includes 7:00 p.m. ET to 7:00 a.m. ET on weekdays

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