Who is categorized as a Receiver in an ACH transaction?

In the context of an ACH (Automated Clearing House) transaction, the Receiver is an individual or entity that has authorized an Originator to initiate a payment on their behalf. This definition aligns with the nature of ACH transactions, where the flow of money typically revolves around individuals or entities who receive funds as a result of authorized transactions. The Receiver essentially provides consent for the initiating party to draw funds from their account, forming a crucial link in the payment process.

While other choices depict relevant roles in the ACH ecosystem — such as the Originator who initiates the payment and institutions that facilitate these transactions — they do not describe the role of the Receiver accurately. The Receiver's authorization is central to the ACH process, serving as a key component in ensuring that transactions are legitimate and agreed upon.