Accredited ACH Professional (AAP) Practice Exam

Which ACH process type is initiated for an in-person purchase using a check as a source document?

1. Accounts Receivable (ARC)

2. Corporate Trade Exchange (CTX)

3. International ACH Transaction (IAT)

4. Point-of-Purchase (POP)

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

The Point-of-Purchase (POP) process type is designed specifically for transactions initiated at the time of a purchase when a consumer uses a check as the source document. In this scenario, the ACH transaction occurs during the transaction point where the customer presents a check to make a payment, and the ACH network facilitates the electronic processing of that check. POP transactions streamline the check payment process by allowing merchants to convert a customer's paper check into an electronic debit at the point of sale. This method enhances efficiency, reduces the risk of bounced checks, and enables faster access to funds for the merchant. The POP process typically requires customer authorization, ensuring compliance with ACH regulations and proper execution of the transaction. In contrast, other process types listed do not apply to in-person check purchases: Accounts Receivable (ARC) is used for converting checks received through the mail into ACH debits, Corporate Trade Exchange (CTX) pertains to corporate payment transactions often involving multiple entries, and International ACH Transaction (IAT) is focused on cross-border payments. Thus, the context of an in-person purchase with a check clearly aligns with the Point-of-Purchase process.