Accredited ACH Professional (AAP) Practice Exam

What type of debit involves an Originator initiating a single-entry debit using the Receiver's check?

1. International ACH Transaction (IAT)

2. Point-of-Purchase (POP)

3. Accounts Receivable (ARC)

4. Corporate Credit or Debit (CCD)

The correct answer is: Point-of-Purchase (POP)

The correct answer is related to the Point-of-Purchase (POP) transaction type. A POP transaction refers to a specific ACH debit that allows a merchant to electronically process a debit from a consumer’s account using the account information from the consumer's check at the point of sale. In this scenario, the Originator (the merchant) initiates a one-time debit to the Receiver's (the consumer's) account, effectively capturing funds directly from their bank account based on the consumer's authorization given at the time of the transaction. This method benefits the merchant by streamlining the payment process since it does not require the physical processing of a paper check, reducing the associated administrative burdens. It’s important to note that POP transactions are specifically designed for one-time debits at point-of-sale locations, distinguishing them from other types like Accounts Receivable (ARC) or Corporate Credit or Debit (CCD), which have distinct uses and processes. Understanding these differences helps clarify the context and application of various ACH transaction types in practical scenarios.