Accredited ACH Professional (AAP) Practice Exam

What is a Destroyed Check Entry (XCK) used for?

1. Initiating a refund for a lost check

2. Debiting in the event an eligible item is lost or destroyed

3. Processing a digital image of a fatality check

4. Re-presenting a previously declined check

The correct answer is: Debiting in the event an eligible item is lost or destroyed

A Destroyed Check Entry (XCK) is specifically utilized to facilitate the debiting process when a check that was previously issued has been lost or destroyed. This type of entry allows the financial institution to reverse the transaction related to the original check, ensuring that the funds can be appropriately managed and accounted for in the customer’s account. The XCK entry serves as a representation of the action taken to remove the liability of the lost or destroyed check from the accounts involved, effectively addressing the situation without requiring the traditional physical check to be present. This is important for managing risk and ensuring that financial records reflect accurate and current information after a check has been compromised. In contrast, other options address different financial circumstances: initiating refunds or processing checks in varied contexts, but they don’t specifically describe the function of a Destroyed Check Entry, which is solely focused on the handling of lost or destroyed checks.