Accredited ACH Professional (AAP) Practice Exam

Which of the following describes the function of the Receiver in ACH transactions?

1. Initiates transactions

2. Authorizes the Originator

3. Receives ACH entries to their account

4. Process payments from the ODFI

The correct answer is: Receives ACH entries to their account

The function of the Receiver in ACH transactions is primarily to receive ACH entries to their account. In this context, the Receiver is the individual or entity that has an account with a financial institution and is the beneficiary of an ACH transaction. This means that when a payment or deposit is made through the ACH network, it is directed to the Receiver’s account, making them the party that receives the funds. This role is crucial within the ACH framework because the Receiver's account is where the funds ultimately end up after going through various processing stages. Understanding this function helps clarify the overall ACH transaction flow, where funds originate from the Originator, are processed by the ODFI and RDFI, and are finalized upon crediting to the Receiver's account. The other functions mentioned in the other options do not pertain to the role of the Receiver in the ACH process. Initiating transactions, authorizing the Originator, and processing payments from the ODFI pertain to different entities and steps within the ACH system. The Receiver's function is distinctly centered on receiving the ACH entries.