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!

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Which of the following terms refers to the person or entity that creates an ACH transaction?

Receiver
Originator
RDFI
ODFI

The correct answer is: Originator

The term that describes the person or entity that creates an ACH transaction is "Originator." In the context of the ACH (Automated Clearing House) network, the Originator is responsible for initiating the transaction to either debit or credit a consumer's or business's account. The Originator can be an individual or a business that sets up the ACH transfer, for example, an employer who deposits payroll directly into an employee's bank account. Understanding the roles in the ACH network is crucial, as it includes various other parties, such as the Receiver, which is the individual or business receiving the funds. The ODFI (Originating Depository Financial Institution) acts on behalf of the Originator to send the transaction through the ACH network, while the RDFI (Receiving Depository Financial Institution) is the financial institution that receives the ACH transaction for the Receiver. Each plays a critical role in the transaction process, but the Originator is specifically the entity that initiates the action.