Accredited ACH Professional (AAP) Practice Exam 2026 - Free AAP Practice Questions and Study Guide

The process of ACH transaction sorting is best described as sorting by destination during transmission to the ACH Operator. This means that transactions are organized based on the receiving financial institution, which allows for efficient processing and routing of the ACH files. The ACH Operator needs to ensure that entries are delivered to the correct bank or credit union, and this destination-based sorting facilitates that need.

While other forms of sorting may occur in different contexts, such as processing by time or amount, ACH transactions specifically require sorting to ensure that funds are correctly routed to the appropriate destination for clearing and settlement. This structured organization is vital for maintaining the efficiency and integrity of the ACH network.