Accredited ACH Professional (AAP) Practice Exam

What is a defining feature of the Corporate Trade Exchange (CTX)?

1. Used only for consumer transactions

2. Allows for bulk payment processing between corporations

3. Involves transactions under $1,000

4. Requires physical check processing

The correct answer is: Allows for bulk payment processing between corporations

The defining feature of the Corporate Trade Exchange (CTX) is that it allows for bulk payment processing between corporations. This payment format is specifically designed to facilitate high-volume transaction processing, enabling businesses to easily manage and execute multiple payments in a single file. Unlike consumer transactions, which may involve smaller amounts and different processing methods, CTX is tailored for corporate entities that need to transfer funds in larger quantities efficiently. CTX transactions can include a wide range of payment types, making it ideal for organizations that routinely engage in payments for services, invoices, or other business-related expenses. This capability is particularly beneficial for companies with numerous vendors or clients, streamlining their accounts payable processes. The other options do not accurately describe CTX's features. For example, it is not limited to consumer transactions, nor does it focus on smaller transaction sizes or require physical check processing. These elements differentiate CTX from other ACH formats and highlight its suitability for corporate payment environments.