What is the dollar limit for a Point-of-Purchase Entry?

What is the dollar limit for a Point-of-Purchase Entry?

• A. $10,000 or less
• B. $25,000 or less
• C. $50,000 or less
• D. No limit

Answer: (B)

The dollar limit for a Point-of-Purchase (POP) entry is indeed $25,000 or less. This type of ACH transaction allows consumers to authorize a one-time debit from their account for purchases made at the point of sale, typically involving checks converted to ACH transactions at the retail location. The limit of $25,000 is established to manage risk associated with point-of-purchase transactions, ensuring that the amount remains within a reasonable range that is easier to control and mitigate fraud. This cap aligns with the overall goals of the ACH network to promote safety and security in electronic transactions while still facilitating convenient payment options for consumers. Transactions exceeding this limit fall outside of the POP category and would need to be processed differently, likely requiring additional authorization steps or different transaction types.

The dollar limit for a Point-of-Purchase (POP) entry is indeed $25,000 or less. This type of ACH transaction allows consumers to authorize a one-time debit from their account for purchases made at the point of sale, typically involving checks converted to ACH transactions at the retail location.

The limit of $25,000 is established to manage risk associated with point-of-purchase transactions, ensuring that the amount remains within a reasonable range that is easier to control and mitigate fraud. This cap aligns with the overall goals of the ACH network to promote safety and security in electronic transactions while still facilitating convenient payment options for consumers. Transactions exceeding this limit fall outside of the POP category and would need to be processed differently, likely requiring additional authorization steps or different transaction types.