Accredited ACH Professional (AAP) Practice Exam

Which of the following describes a responsibility of the ACH Operator?

1. Evaluating credit worthiness of borrowers

2. Provide clearing and settlement services for ACH entries

3. Processing only international transactions

4. Managing bank investments

The correct answer is: Provide clearing and settlement services for ACH entries

The role of the ACH Operator is central to the functioning of the Automated Clearing House network. One of its primary responsibilities is to provide clearing and settlement services for ACH entries. This involves receiving, processing, and distributing ACH transactions between financial institutions, ensuring that funds are transferred accurately and efficiently. The ACH Operator acts as an intermediary, making it possible for transactions to be completed securely and timely. This includes verifying that the transactions meet the necessary processing requirements and ensuring that funds are settled appropriately between the banks involved. The other responsibilities mentioned in the other options do not fall under the purview of the ACH Operator. Evaluating creditworthiness pertains to lending institutions rather than the ACH network. Processing only international transactions is inaccurate as the ACH primarily handles domestic transactions within the United States. Managing bank investments is typically a function of a bank’s asset management or investment team, rather than the ACH Operator’s responsibilities. Thus, the focus on clearing and settlement clearly delineates the essential function of the ACH Operator in the ACH system.