Accredited ACH Professional (AAP) Practice Exam

Which transaction type involves the use of a Receiver’s check for in-person purchases?

1. Corporate Trade Exchange (CTX)

2. Accounts Receivable (ARC)

3. Point-of-Purchase (POP)

4. International ACH Transaction (IAT)

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

The transaction type that involves the use of a Receiver’s check for in-person purchases is Point-of-Purchase (POP). This ACH transaction type is specifically designed for consumers who present a check at a retail location. When a Receiver uses a check to make a purchase, the merchant can convert that check into an ACH debit, allowing for the funds to be electronically transferred from the consumer's account to the merchant’s account. POP transactions streamline the payment process, enabling faster processing and reducing the handling of physical checks. This is particularly useful in retail settings where speed and efficiency are crucial. Thus, the association of POP with in-person purchases reflects its function in facilitating smooth transaction flows. The other options represent different types of ACH transactions that do not involve in-person check payments. Corporate Trade Exchange (CTX) transactions are typically used for business-to-business payments, Accounts Receivable (ARC) transactions facilitate the electronic collection of payments from checks received via mail, and International ACH Transactions (IAT) are used for cross-border payments. Each of these serves unique needs that do not pertain to the immediate use of a Receiver’s check at a physical point of sale.