What type of entries may an Internet-Initiated Entry be authorized for?

What type of entries may an Internet-Initiated Entry be authorized for?

• A. Single and Recurring Entries
• B. Multiple and Timed Entries
• C. One-time and Annual Entries
• D. Pooled and Individual Entries

Answer: (A)

Internet-Initiated Entries (IAT) are designed to facilitate electronic payments initiated over the internet. These types of entries can be authorized for both Single and Recurring Entries. A Single Entry is a one-time transaction, while Recurring Entries are made at regular intervals (e.g., monthly payments). It is critical for IAT transactions to have explicit authorization from the receiver, which can be achieved for both of these entry types. The structure of IAT entries allows for flexibility in payment scheduling, which is why both Single and Recurring Entries are permissible. Understanding this distinction helps in recognizing the functionality of IAT transactions within the ACH network, ensuring proper compliance and authorization practices are followed.

Internet-Initiated Entries (IAT) are designed to facilitate electronic payments initiated over the internet. These types of entries can be authorized for both Single and Recurring Entries. A Single Entry is a one-time transaction, while Recurring Entries are made at regular intervals (e.g., monthly payments). It is critical for IAT transactions to have explicit authorization from the receiver, which can be achieved for both of these entry types.

The structure of IAT entries allows for flexibility in payment scheduling, which is why both Single and Recurring Entries are permissible. Understanding this distinction helps in recognizing the functionality of IAT transactions within the ACH network, ensuring proper compliance and authorization practices are followed.