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AAP Flashcards Questions and Correct
Answers/ Latest Update / Already
Graded
A company or individual that has been authorized by the Receiver
to initiate either a credit or debit ACH entry to their account.
Ans: Originator
A financial institution that receives payment instructions from
Originators and forwards the entries to the ACH Operator.
Ans: Originating Depository Financial Institution (ODFI)
ACH Payment Transaction are accumulated throughout the day,
sent to the ACH Operator, sorted by destination, and transmitted in
groups at specified times.
Ans: Batch Process, store-and-forward system
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An individual or a company that has authorized the Originator to
initiate an ACH entry to their account with the RDFI.
Ans: Receiver
Financial institution identified by the routing number encoded on the
MICR lineof a check.
Ans: Paying Bank (Payor's Depository Financial Institution)
A financial institution that receives ACH entries from the ACH
Operator and posts the entries to the accounts of its depositors.
Ans: Receiving Depository Financial Institution (RDFI)
The central clearing facility for ACH transactions.
Ans: ACH Operator
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A voluntary association of depository institutions that facilitate the
clearing of checks or electronic items through the direct exchange
of funds between memebers.
Ans: Clearing House
An entity that issues a credit or debit card to the Cardholder.
Ans: Card Issuer
The party to whom a check is made payable.
Ans: Payee
A person or entity that is issued a credit or debit account that is
accessed through the use of a card.
Ans: Cardholder
Legal framework for the ACH Network
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Ans: 1. ACH Rules
2. UCC 4A
3. Reg E
4. Reg CC
The national trade association for electronic payments, which
establishes the rules, industry standards and procedures governings
the exchange of commercial ACH payments by depository finacial
institutions.
Ans: NACHA - The Electronic Payments Network
An optional, variable format field of the MICR line of a check.
Ans: Auxiliary On-Us Field
Payment system to which net settlement applies.
Ans: ACH Payment System
AAP Flashcards Questions and Correct
Answers/ Latest Update / Already
Graded
A company or individual that has been authorized by the Receiver
to initiate either a credit or debit ACH entry to their account.
Ans: Originator
A financial institution that receives payment instructions from
Originators and forwards the entries to the ACH Operator.
Ans: Originating Depository Financial Institution (ODFI)
ACH Payment Transaction are accumulated throughout the day,
sent to the ACH Operator, sorted by destination, and transmitted in
groups at specified times.
Ans: Batch Process, store-and-forward system
,2 | Page
An individual or a company that has authorized the Originator to
initiate an ACH entry to their account with the RDFI.
Ans: Receiver
Financial institution identified by the routing number encoded on the
MICR lineof a check.
Ans: Paying Bank (Payor's Depository Financial Institution)
A financial institution that receives ACH entries from the ACH
Operator and posts the entries to the accounts of its depositors.
Ans: Receiving Depository Financial Institution (RDFI)
The central clearing facility for ACH transactions.
Ans: ACH Operator
,3 | Page
A voluntary association of depository institutions that facilitate the
clearing of checks or electronic items through the direct exchange
of funds between memebers.
Ans: Clearing House
An entity that issues a credit or debit card to the Cardholder.
Ans: Card Issuer
The party to whom a check is made payable.
Ans: Payee
A person or entity that is issued a credit or debit account that is
accessed through the use of a card.
Ans: Cardholder
Legal framework for the ACH Network
, 4 | Page
Ans: 1. ACH Rules
2. UCC 4A
3. Reg E
4. Reg CC
The national trade association for electronic payments, which
establishes the rules, industry standards and procedures governings
the exchange of commercial ACH payments by depository finacial
institutions.
Ans: NACHA - The Electronic Payments Network
An optional, variable format field of the MICR line of a check.
Ans: Auxiliary On-Us Field
Payment system to which net settlement applies.
Ans: ACH Payment System
