SEC Codes and Entry Types Flashcards
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Read the first 6 SEC Codes and Entry Types flashcards as text
The IAT SEC code is required when:
Answer: A payment transaction involves a financial agency outside the United States
IAT (International ACH Transaction) must be used whenever an ACH payment involves a financial agency outside the territorial jurisdiction of the United States.
CTX entries differ from CCD entries primarily because CTX:
Answer: Supports up to 9,999 addenda records for corporate trade exchange data
CTX (Corporate Trade Exchange) supports up to 9,999 addenda records, allowing detailed remittance information to accompany business-to-business payments.
BOC (Back Office Conversion) entries are created from:
Answer: Checks collected at the point of sale and converted during back-office processing
BOC is used when a source document (check) is collected at the point of sale but conversion to an ACH debit occurs later in back-office processing rather than at the register.
RCK entries are used to re-present:
Answer: Returned consumer checks (NSF) as ACH debit entries
RCK (Re-presented Check Entry) allows Originators to re-present a check that was returned for insufficient or uncollected funds as an ACH debit entry.
The MTE SEC code is used for:
Answer: Machine transfer entries (ATM transactions) processed through the ACH network
MTE (Machine Transfer Entry) is the SEC code for ATM transactions that are processed through the ACH network.
When a consumer's check is received via a lockbox for conversion to an ACH debit, which SEC code applies?
Answer: ARC (Accounts Receivable Conversion)
ARC is the correct SEC code for checks received via mail or lockbox (not at a physical point of purchase) that are converted to ACH debit entries.