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The Customer-Initiated Entry (CIE) transaction type is a method that allows businesses to effectively collect payments from their customers through the Automated Clearing House (ACH) network. This type of transaction is initiated by the customer, who authorizes the retailer to collect payments directly from their bank account for goods or services received.

In the context of a plumbing fixture retailer, utilizing CIE can streamline accounts receivable processing because it creates a more direct and efficient way to handle payments. Customers can set up one-time or recurring payments, reducing the administrative burden and potential delays associated with traditional invoicing methods and follow-ups for payments.

CIE transactions are particularly beneficial for retailers who want to enhance cash flow management and reduce the time it takes to receive payments. By allowing customers to trigger the payment initiation process, the plumbing fixture retailer can increase the likelihood of prompt payment and maintain better relationships with their clientele.

Other types of ACH transactions, such as ARC, TEL, and WEB, each serve specific purposes but may not align as closely with the goals of improving accounts receivable for a retailer in this specific context. ARC, for example, is intended for converting checks to ACH, which may not be ideal for a retailer wishing to have customers directly authorize payments. TEL