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titleShall I get an error response when updating Rates / Restrictions to a selected Channel / Booking Agent that does not support that functionality?

No. Your system will not receive an error response from SiteMinder if the selected Channels / Booking Agents do not support that functionality.

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titleIs it possible to have more than 1 child price band (e.g. one price for children 3 - 8 years and another for 9 - 16)?

See this answer, this depends on whether the channel has this option and is set within the channel. Channels only have the option for infant and child