What type of transaction is an adjustment used to correct?

An adjustment is used specifically to correct a transaction that is out-of-balance. In payment processing, an out-of-balance transaction typically refers to a situation where the expected amounts (such as the debited and credited amounts) do not match up correctly. This discrepancy can occur due to various factors, such as data entry errors, miscalculations, or other issues that affect the integrity of the original transaction.

When an adjustment is made, it aims to realign the figures, ensuring that the financial records accurately reflect the true state of affairs. This is essential for maintaining precise financial tracking and accountability within payment systems.

The other options represent different issues that require separate solutions; for example, a transaction that has been fraudulently modified may need to be addressed through fraud prevention measures and investigations rather than simple adjustments. Similarly, transactions that cannot be reconciled or fixed-rate loan agreements pertain to different areas of financial management and accounting practices, making them unsuitable contexts for applying adjustments in the same way as an out-of-balance transaction.