AAP ACH Network Participants and Roles

Question 1

What is the primary role of an Originating Depository Financial Institution (ODFI) in the ACH network?

Accepted Answer

Receives ACH entries from Originators and forwards them to an ACH Operator

Answer

The ODFI acts as the entry point into the ACH network, accepting entries from Originators and transmitting them to an ACH Operator for processing.

Question 2

Which entity is responsible for receiving ACH entries and posting them to Receiver accounts?

Accepted Answer

RDFI (Receiving Depository Financial Institution)

Answer

The RDFI receives ACH entries from the ACH Operator and posts them to the Receiver's account.

Question 3

How is a Third-Party Sender (TPS) defined under NACHA Operating Rules?

Accepted Answer

A company that transmits ACH entries on behalf of Originators through an ODFI

Answer

A Third-Party Sender is an intermediary that transmits ACH entries to an ODFI on behalf of Originators, often providing processing services for multiple clients.

Question 4

Which two entities serve as ACH Operators in the United States?

Accepted Answer

FedACH and EPN (operated by The Clearing House)

Answer

The two ACH Operators are FedACH (operated by the Federal Reserve Banks) and EPN (Electronic Payments Network, operated by The Clearing House).

Question 5

What term describes the company or individual that initiates ACH credit or debit entries with authorization from a Receiver?

Accepted Answer

Originator

Answer

The Originator is the entity that initiates ACH entries, having obtained proper authorization from the Receiver to do so.

AAP - Accredited ACH Professional Practice Test

AAP - Accredited ACH Professional Practice Test

AAP ACH Network Participants and Roles