Accredited ACH Professional (AAP) Practice Exam

What type of debit entry is initiated at the point of sale?

1. Internet Initiated (WEB)

2. Point-of-sale (POS)

3. Telephone-Initiated (TEL)

4. Recurring Payment (RP)

The correct answer is: Point-of-sale (POS)

The type of debit entry initiated at the point of sale is a Point-of-sale (POS) entry. This type of transaction occurs when a consumer uses a debit card to purchase goods or services directly in a retail environment. During a POS transaction, funds are electronically transferred from the buyer's account to the merchant's account in real-time, facilitating an immediate exchange for goods or services. Point-of-sale entries are specifically designed to handle in-person transactions, differentiating them from other types of debit entries that are initiated through alternative channels. For instance, Internet Initiated (WEB) entries occur online, while Telephone-Initiated (TEL) transactions are made over the phone, and Recurring Payments (RP) involve a series of scheduled withdrawals from a consumer’s account. Each of these other options involves different mechanisms and settings for initiating transactions, making the POS entry distinctly relevant to retail purchases conducted in a physical location.