Accredited ACH Professional (AAP) Practice Exam

Which payment systems include participants such as the Originator and Beneficiary?

1. ACH Transactions

2. Fedwire Funds and Securities Services

3. Check Clearing System

4. Electronic Funds Transfer

The correct answer is: Fedwire Funds and Securities Services

The choice that correctly identifies a payment system including participants such as the Originator and Beneficiary is ACH Transactions. ACH (Automated Clearing House) transactions involve a network in which the Originator (the individual or entity initiating the payment) submits the transaction through their financial institution, and the Beneficiary (the recipient) receives the payment through their own financial institution. This bi-party relationship is integral to how ACH operates, with both parties playing distinct roles in the transaction process. Fedwire Funds and Securities Services, although a crucial payment system, primarily facilitates immediate funds transfers and operates more directly between financial institutions, rather than focusing on individual Originators and Beneficiaries in the same way ACH does. Similarly, while the Check Clearing System and Electronic Funds Transfer processes involve the movement of funds, they do not specifically highlight the roles of Originator and Beneficiary in the same clear manner as ACH transactions do. The structure of these systems might involve additional intermediaries or different participant designations. In summary, the distinctive relationship between Originator and Beneficiary is most clearly articulated within the framework of ACH Transactions, making this the appropriate choice.