Accredited ACH Professional (AAP) Practice Exam

What does ‘revoked’ mean in the context of ACH consumer debit transactions?

1. Transaction was voided by the bank

2. Transaction is unauthorized by the Receiver

3. Transaction completed successfully but under dispute

4. Transaction was initiated but never completed

The correct answer is: Transaction is unauthorized by the Receiver

In the context of ACH consumer debit transactions, the term ‘revoked’ refers specifically to a situation where the transaction is unauthorized by the Receiver. This means that the consumer has notified their bank that they no longer authorize the transaction, which may involve a consumer disputing a debit that was previously permitted. The revocation leads to an immediate halt to any ongoing or future debits that were established under that authorization. This concept is particularly important in ACH transactions, as it provides a consumer with a way to manage and control their financial transactions, ensuring that they can withdraw their consent if they feel the transaction is invalid or if they no longer wish to proceed. This practice is a consumer protection measure within the ACH network, ensuring that consumers are not bound indefinitely by prior authorizations. The other options do not accurately capture the definition of ‘revoked’ in this specific context. For instance, a transaction that is voided by the bank does not pertain to the customer's consent or authorization but rather the bank’s action to annul the transaction. Similarly, a transaction that is completed but under dispute does not align with the concept of revocation, as revocation implies that the authority to execute the debit has been withdrawn before it occurs, rather than addressing a