Accredited ACH Professional (AAP) Practice Exam

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Prepare for the Accredited ACH Professional (AAP) Exam with tailored questions and study materials to enhance your understanding of ACH transactions and operations. Test your skills and readiness for this important certification!

Practice this question and more.

What information typically identifies the Paying Bank in a transaction?

Account number on the ACH entry
Routing number encoded on the MICR line
A unique transaction ID
The name of the Payee

The correct answer is: Routing number encoded on the MICR line

The routing number encoded on the MICR line is essential in identifying the Paying Bank in a transaction. This number serves as a unique identifier for financial institutions in the United States, allowing for the proper identification of the bank that holds the account from which funds are being drawn. The routing number facilitates the processing of transactions by directing them to the correct financial institution, ensuring that the payment is correctly credited or debited. While the account number on the ACH entry is critical for identifying the specific account at the bank, it does not uniquely identify the bank itself. A unique transaction ID is primarily used for tracking and reconciliation purposes, but it does not indicate the financial institution involved. Similarly, the name of the Payee is associated with the receiver of the funds and does not pertain to identifying the Paying Bank. Therefore, the routing number, prominently featured in transactions, plays a pivotal role in ensuring the accuracy and efficiency of the ACH payment system.