Accredited ACH Professional (AAP) Practice Exam

What is the site from which entries are sent to the ACH Operator for processing called?

1. Receiving Point

2. Sending Point

3. Originating Point

4. Processing Point

The correct answer is: Sending Point

The site from which entries are sent to the ACH Operator for processing is referred to as the "Originating Point." This is where the ACH entries originate, typically associated with the organization or financial institution that initiates the transactions. The term reflects that this is the starting point of the ACH transaction lifecycle, where input data is collected and formatted before being transmitted to the ACH Operator for processing. Understanding the terminology within the ACH network is crucial, as it helps clarify the roles of different entities involved in the transaction process. Each term in the context of ACH has a specific meaning: the Receiving Point, for instance, refers to where the entries are received from the ACH, and the Processing Point relates to where the ACH transactions are processed. By recognizing that the correct terminology—for the site that initiates and transmits the entries—is "Originating Point," one can better understand the flow of transactions through the ACH system.