Accredited ACH Professional (AAP) Practice Exam

What does the ACH Operator do in the ACH transaction process?

1. Initiates credit and debit card transactions

2. Acts as a central clearing facility for ACH transactions

3. Posts ACH entries to customer accounts

4. Authorizes the originator's entries

The correct answer is: Acts as a central clearing facility for ACH transactions

The ACH Operator serves a critical role in the ACH transaction process by acting as a central clearing facility for ACH transactions. This means that the ACH Operator facilitates the movement of funds between financial institutions by processing and settling the entries that are submitted through the ACH network. It ensures that transactions are transmitted securely and efficiently from the originating bank to the receiving bank. In this function, the ACH Operator verifies and sorts the ACH entries, ensuring that the appropriate debits and credits are applied to the correct accounts. This role is essential in maintaining the integrity and reliability of the automated clearing house system, allowing for smooth and accurate transactions. The other options describe functions that are outside the scope of what the ACH Operator does. For instance, initiating credit and debit card transactions typically falls under the purview of payment processors or card networks, not the ACH Operator. Similarly, posting ACH entries to customer accounts is the responsibility of individual financial institutions, which handle the account management for their customers. Authorizing the originator's entries is also not an ACH Operator function; instead, this process is generally handled by the originating financial institution to ensure that entries meet all necessary rules and regulations before they are submitted to the ACH network.