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 SEC Code requires an agreement between corporate trading partners?

The correct answer is: CCD

The correct answer is CCD, which stands for Cash Concentration or Disbursement. This SEC Code is specifically designed for corporate transactions involving the movement of funds between an originator and a receiver, typically in business contexts. The CCD transaction type necessitates an agreement or established relationship between the trading partners involved. This is because the transactions often involve corporate entities that require a clear understanding of the terms, limits, and protocols for transferring funds, which is formalized in the agreement. In contrast, the other options represent different SEC Codes with varying requirements. PPD (Prearranged Payment and Deposits) relates to personal transactions and does not require the same level of formal agreement as CCD. WEB (Internet-Initiated Entries) is focused on consumer payments initiated via the internet, and like PPD, it does not require prior agreement between the trading partners. POS (Point of Sale) pertains to debit card transactions occurring at a terminal and also does not demand a formalized agreement between the parties involved. The distinction lies in the nature of the transactions and the relationships they govern, making CCD uniquely dependent on an agreement between corporate partners.