What does the indicator "R" in the Entry Detail Record signify?

What does the indicator "R" in the Entry Detail Record signify?

• A. Reversal of a transaction
• B. Recurring WEB Entry
• C. Request for transaction details
• D. Real-time processing

Answer: (B)

The "R" indicator in the Entry Detail Record specifically signifies a Recurring WEB Entry. This designation is used within the ACH system to identify entries that are part of a series or recurring transactions, which are commonly used for regular payments like subscriptions or utility bills. When an entry has this indicator, it informs the processing systems and receiving parties that the transaction is not a one-time event but rather part of a scheduled agreement, allowing for appropriate handling and anticipation of future entries in the same transaction sequence. Understanding this is crucial for both participants in an ACH transaction, as it affects the way transactions are recorded and monitored over time. The other options describe different concepts within the ACH framework. For instance, the reversal of a transaction is identified with a different indicator, and real-time processing refers to processes that allow for immediate transaction confirmation, which does not apply to the ACH's batching nature. Additionally, a request for transaction details is not represented by this particular indicator and has its own channels for communication.

The "R" indicator in the Entry Detail Record specifically signifies a Recurring WEB Entry. This designation is used within the ACH system to identify entries that are part of a series or recurring transactions, which are commonly used for regular payments like subscriptions or utility bills.

When an entry has this indicator, it informs the processing systems and receiving parties that the transaction is not a one-time event but rather part of a scheduled agreement, allowing for appropriate handling and anticipation of future entries in the same transaction sequence. Understanding this is crucial for both participants in an ACH transaction, as it affects the way transactions are recorded and monitored over time.

The other options describe different concepts within the ACH framework. For instance, the reversal of a transaction is identified with a different indicator, and real-time processing refers to processes that allow for immediate transaction confirmation, which does not apply to the ACH's batching nature. Additionally, a request for transaction details is not represented by this particular indicator and has its own channels for communication.