Accredited ACH Professional (AAP) Practice Exam

What is a Back Office Conversion (BOC) transaction?

1. A cash refund initiated by a consumer

2. A single-entry debit initiated by an Originator

3. A multi-party payment transaction

4. A credit card transaction at a point-of-sale

The correct answer is: A single-entry debit initiated by an Originator

A Back Office Conversion (BOC) transaction refers specifically to a type of ACH transaction where a paper check is converted to a single-entry debit initiated by an Originator. This conversion typically occurs after a consumer has presented a check for payment, such as at a point of sale, and then that check is processed in the back office for electronic processing. The key aspect of a BOC transaction is that it is a single-entry transaction. After a check is accepted, the merchant can convert it into an ACH debit by capturing the check's information, effectively allowing for processing without the physical check needing to be deposited at a bank. This streamlines the payment process and can reduce the number of checks that need to be physically handled. The other options do not correctly describe BOC transactions. For instance, a cash refund is not a transaction type related to BOC; it’s a different form of transaction entirely. Similarly, a multi-party payment transaction involves more than just the single-entry nature of BOC transactions, and credit card transactions are fundamentally different from ACH-based transactions. Thus, the focus on the single-entry debit initiated by the Originator is what makes this answer valid.