Which of the following describes the process starting with the receipt of the Check by the Originator for an ARC Entry?

The correct answer, which is Authorization, refers to a critical step in the process of an ARC (Accounts Receivable Check) entry, particularly beginning with the receipt of a check by the Originator. In the context of ACH transactions, authorization is the process in which the Originator obtains permission from the account holder (the consumer) to initiate a transaction. This is essential for ensuring that the transaction is legitimate and that the consumer consents to have their account debited.

When the Originator receives a check, they must verify that they have the necessary authorization to process the check as an ACH transaction. This typically involves obtaining a signed authorization form which confirms that the consumer agrees to the payment being processed through the ACH network rather than via traditional check processing. The integrity of the ACH system relies heavily on this step, as it establishes a legal basis for the transaction and protects both the Originator and the consumer.

The other options—Notification, Completion, and Confirmation—do not describe this initial phase. Notification might pertain to informing parties involved about a transaction, Completion typically refers to the finalization of the payment process, and Confirmation could involve verifying or acknowledging an action after it has occurred. None of these terms encapsulate the critical need for obtaining proper authorization