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

The method required by the ODFI (Originating Depository Financial Institution) to ensure that funds are available prior to the settlement of an ACH (Automated Clearing House) transaction is prefunding. Prefunding involves the process where the ODFI collects funds from its clients before initiating an ACH transaction. This means that the funds are securely held and available to cover the transaction before it is processed. This practice aids in mitigating risk and ensuring that the necessary funds are on hand, thereby enhancing the reliability of the ACH network.

In contrast, risk pooling, subsidy funding, and delayed settlement do not serve the same purpose regarding the availability of funds prior to transaction settlement. Risk pooling refers to a mechanism where multiple entities combine their risks to manage cash flow and exposure, but it does not ensure immediate availability of funds for a specific transaction. Subsidy funding pertains to the arrangement of providing financial support without specifically ensuring readiness for ACH transactions. Lastly, delayed settlement allows transactions to settle at a later time, which does not inherently address whether the funds are available at the time of initiation. Thus, prefunding is the correct approach taken by the ODFI to assure funds availability prior to the settlement.