POP Entries (Point-of-Purchase Entry)

Single Entry debits originated based on an Eligible Source Document provided to an Originator by a Receiver at the point-of-purchase or manned bill payment location for conversion at the point-of-purchase or manned bill payment location.

Authentication Requirement

The Company is required to verify the identity of the Receiver prior to originating a POP entry.

Authorization/Notification Requirements

Company must provide notice to the Receiver and obtain a written authorization from the Receiver (a signed receipt).
Notice must be posted in a prominent and conspicuous location and a copy of the notice must be provided to the Receiver at the time of the transaction.
A copy of the Receiver’s authorization (the signed receipt) must be made available upon request for two (2) years from the Settlement Date of the transaction.

Source Document Eligibility Requirement

The Company may accept a check as a source document for POP if it meets the following criteria:

It is presented at the time of payment, usually at a cash register or other checkout location;
It has not been previously negotiated, used in a previous POP transaction or voided;
It contains a pre-printed check serial number;
It is in an amount of $25,000 or less;
The routing number, account number, and check serial number are encoded in magnetic ink;
It is payable in U.S. currency only; and
It is a consumer check, or small sized business check, that does not contain an Auxiliary On-Us Field in the MICR line (large format business checks).

Ineligible Items

Checks that do not meet all eligibility requirements;
Checks payable to a person other than the Originator;
Check that accesses credit card account, home equity line, or other form of credit;
Check drawn on an investment account;
Check that is an obligation of a Financial Institution (e.g. Cashier’s check, Travelers Check, Money Order, Official Check);
Checks drawn on the Treasury of the United States, a Federal Reserve Bank, or a Federal Home Loan Bank; and
Checks drawn on a state or local government that are not payable through or at a Participating DFI.

Receipt Requirements

The eligible source document must be voided and returned to the Receiver along with a receipt containing specific information. The following information must be included on the customer’s receipt:

Company name;
Company/third-party service provider phone number for inquiries;
Date of the transaction;
Transaction amount;
Check serial number;
Merchant number (or other unique number that identifies the location of the transaction);
Terminal city; and
Terminal state

Responsibilities of Originators

When initiating POP (Point-of-Purchase) entries, originators should adhere to specific responsibilities to ensure compliance with established rules and regulations. These responsibilities include:

Capture of Banking Information; Voiding of Source Document: Capture the necessary banking information from the source document and initiate the POP Entry. Ensure that the source document is voided, indicating that the check has been converted to an electronic format. This step is essential to prevent the check from being further presented for payment.
Return the Voided Source Document: At the time of the transaction, return the voided source document to the Receiver. This ensures that the Receiver has a record of the transaction and the voided check, promoting transparency and providing them with a physical record.
Provide Copy of Receipt to RDFI: Be prepared to provide a copy of the receipt to the RDFI (Receiving Depository Financial Institution) within ten banking days upon receiving a written request from the RDFI. This must be done if the request is received within two years of the Settlement Date of the POP Entry.

Sample POP Notification Language

When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction.