National Check Professional (NCP) Certification Practice Test

Which of the following adjustments can be processed if the amount is less than $25?

1. PAID

2. ENC

3. NCH

4. ERR

The correct answer is: PAID

The reason why "PAID" is the correct choice for processing adjustments under $25 is that it typically refers to adjustments that can be recognized as settled and final. In the context of check processing, a "PAID" adjustment implies that the amount has been accepted and paid out to the payee without complications. Adjustments labeled as "ENC" usually relate to electronic checks or entries, often involving a different set of rules, and may not be applicable for amounts less than a certain threshold, such as $25. "NCH" can signify an adjustment that may involve compliance or regulatory aspects that are not meant for simple corrections. Similarly, "ERR," which indicates an error, often involves a more complex resolution process rather than straightforward payment. Therefore, among the options given, "PAID" is appropriate for adjustments less than $25, allowing for a direct settlement of minor discrepancies effectively and efficiently in the check processing system.