National Check Professional (NCP) Certification Practice Test

Which of the following tasks is performed on Day 2 of check processing?

1. Image reject repair

2. Settlement and reconciliation

3. Outgoing returns

4. Image quality analysis

The correct answer is: Outgoing returns

The task of outgoing returns is indeed performed on Day 2 of check processing. This phase involves the handling of checks that have been determined to be non-payable after initial processing. Outgoing returns are processed to send back checks to the originating bank or person who issued them, typically due to issues such as insufficient funds or a closed account. In the context of check processing, Day 2 marks a critical point where institutions finalize their assessments of the checks processed on the previous day. This ensures that any checks that cannot proceed to payment are promptly returned, enabling better risk management and ensuring compliance with banking regulations. The other tasks listed, while essential to overall check processing, are generally conducted at different stages within the check processing timeline. For instance, image reject repair and image quality analysis typically occur on subsequent processing days to address any discrepancies or quality issues related to check images. Settlement and reconciliation, on the other hand, involve balancing accounts after funds have moved, which usually takes place after the return process is complete.