Accredited ACH Professional (AAP) Practice Exam

Which transaction type is used for single-entry debits initiated via mail or a drop box?

1. Corporate Credit or Debit (CCD)

2. Accounts Receivable (ARC)

3. Point-of-Purchase (POP)

4. Corporate Trade Exchange (CTX)

The correct answer is: Accounts Receivable (ARC)

The choice of Accounts Receivable (ARC) is appropriate because this transaction type specifically addresses single-entry debits that are initiated when a consumer authorizes a debit to their account through a paper check, which is then converted into an electronic transaction. This typically occurs when the check is received in the mail or deposited into a drop box by a business. In the context of the ARC transaction type, the key characteristic is the ability to convert a traditional payment method (the physical check) into an electronic debit, thus streamlining the cash management process for businesses. The use of a drop box or receiving checks via mail aligns with typical occurrences in accounts receivable scenarios, where companies collect payments from customers. The other options do not fit this specific transaction type as follows: Corporate Credit or Debit (CCD) is used for corporate transactions and does not apply to consumer transactions initiated through check conversion; Point-of-Purchase (POP) is for card-present transactions at retail locations; and Corporate Trade Exchange (CTX) serves more complex corporate transactions, particularly in B2B exchanges involving multiple payments. Thus, ARC distinctly encompasses the process described in the question.