What reason cannot be used to return a Point-of-Purchase Entry?

What reason cannot be used to return a Point-of-Purchase Entry?

• A. Unauthorized
• B. Authorization Revoked
• C. Account Closed
• D. Payment Stopped

Answer: (B)

In the context of ACH transactions, particularly with Point-of-Purchase (POP) entries, the reason for returning a transaction must align with the specific rules governing these types of entries. A Point-of-Purchase entry is initiated at the point of sale and requires specific customer authorization. When we consider the reasons listed, one of the options—"Authorization Revoked"—is not a valid reason for returning a POP entry. This is because a Point-of-Purchase entry is generally limited to situations where the consumer has consented to the transaction at the time of sale. If a consumer were to revoke authorization, it would not be acceptable to use that as a reason for returning a transaction that was already authorized at the point of sale. In contrast, other reasons such as "Unauthorized," "Account Closed," and "Payment Stopped" are valid return reasons for different types of ACH entries, as they can pertain to situations where the transaction was not properly authorized, the account is no longer active, or there is a directive to halt payment provided by the account holder. However, once a Point-of-Purchase transaction is completed and properly authorized, revoking that authorization does not retroactively justify a return of that transaction.

In the context of ACH transactions, particularly with Point-of-Purchase (POP) entries, the reason for returning a transaction must align with the specific rules governing these types of entries. A Point-of-Purchase entry is initiated at the point of sale and requires specific customer authorization.

When we consider the reasons listed, one of the options—"Authorization Revoked"—is not a valid reason for returning a POP entry. This is because a Point-of-Purchase entry is generally limited to situations where the consumer has consented to the transaction at the time of sale. If a consumer were to revoke authorization, it would not be acceptable to use that as a reason for returning a transaction that was already authorized at the point of sale.

In contrast, other reasons such as "Unauthorized," "Account Closed," and "Payment Stopped" are valid return reasons for different types of ACH entries, as they can pertain to situations where the transaction was not properly authorized, the account is no longer active, or there is a directive to halt payment provided by the account holder. However, once a Point-of-Purchase transaction is completed and properly authorized, revoking that authorization does not retroactively justify a return of that transaction.