Accredited ACH Professional (AAP) Practice Exam

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Prepare for the Accredited ACH Professional (AAP) Exam with tailored questions and study materials to enhance your understanding of ACH transactions and operations. Test your skills and readiness for this important certification!

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Which SEC Code is NOT used for converting checks?

The correct answer is: CTX

The SEC code that is not used for converting checks is CTX, which stands for Corporate Trade Exchange. CTX is specifically designed for business-to-business transactions that include complex payment information, such as invoicing details, and allows for the transmission of both payments and associated remittance data. In contrast, ARC (Accounts Receivable Conversion) is used for converting checks received in a consumer environment into ACH debits. BOC (Back Office Conversion) is also related to check conversion, allowing for checks received at the point of sale to be converted into ACH transactions during back-office processing. POP (Point of Purchase) is used for instances where checks are presented at the point of sale and converted into ACH transactions, typically for consumer payments. Understanding the specific purposes of these SEC codes is crucial in the context of ACH processing and check conversion, particularly when differentiating between various methods of handling payments and associated data.