What type of Entry does not require prior authorization from the Receiver?

What type of Entry does not require prior authorization from the Receiver?

• A. WEB Debit Entry
• B. Account Receivable Entry
• C. Back Office Conversion Entry
• D. Prearranged Payment Entry

Answer: (C)

The Back Office Conversion (BOC) Entry does not require prior authorization from the Receiver, which makes it unique compared to other types of entries. BOC Entries are used for converting checks received at a point of purchase into ACH debit transactions. Since these checks are typically accepted at the transaction point, the authorization is implied through the act of presenting the check for payment. In contrast, WEB Debit Entries require explicit authorization since they are initiated by the Receiver over the internet and must have prior consent. Account Receivable Entries, while often based on existing relationships and agreements, also require some level of authorization or agreement to debit the Receiver’s account. Prearranged Payment Entries are scheduled payments that require prior authorization to ensure that the Receiver knows when the transactions will occur and what amounts will be deducted. Understanding these distinctions is crucial for navigating the regulatory landscape of ACH transactions and ensuring compliance with the necessary authorization requirements.

The Back Office Conversion (BOC) Entry does not require prior authorization from the Receiver, which makes it unique compared to other types of entries. BOC Entries are used for converting checks received at a point of purchase into ACH debit transactions. Since these checks are typically accepted at the transaction point, the authorization is implied through the act of presenting the check for payment.

In contrast, WEB Debit Entries require explicit authorization since they are initiated by the Receiver over the internet and must have prior consent. Account Receivable Entries, while often based on existing relationships and agreements, also require some level of authorization or agreement to debit the Receiver’s account. Prearranged Payment Entries are scheduled payments that require prior authorization to ensure that the Receiver knows when the transactions will occur and what amounts will be deducted.

Understanding these distinctions is crucial for navigating the regulatory landscape of ACH transactions and ensuring compliance with the necessary authorization requirements.