Who typically receives ACH credits representing batches of card transactions?

• A. Businesses
• B. Cardholders
• C. Banks
• D. Government

Answer: (A)

ACH credits push funds into a recipient’s account, and in card transaction settlements the funds are deposited into the merchant’s business account. The processor or acquiring bank batches the card settlement amounts and sends them as an ACH credit to the merchant’s bank, which then credits the merchant’s business account. Cardholders are not the recipients of these ACH credits for card settlements, and while banks facilitate the transfer, they are acting on behalf of the merchant rather than being the end recipient. The government isn’t involved in this routine settlement flow. So, the typical recipient of these ACH credits representing batches of card transactions is the business (the merchant).