Which ACH format is utilized for corporate payments?

The correct choice, which focuses on corporate payments, is Cash Concentration/Disbursement. This ACH format is specifically designed to facilitate the efficient management of funds within an organization. It enables companies to consolidate cash from multiple locations and properly manage disbursements to vendors or creditors.

In a corporate context, Cash Concentration allows businesses to centralize their cash flow by transferring funds from various bank accounts back to a primary account. This process not only enhances liquidity management but also streamlines the payment process.

Additionally, the disbursement aspect refers to the way corporations pay their obligations—such as payroll, vendor payments, or other financial responsibilities—via the ACH network. Utilizing this format allows for more controlled, predictable cash flow and the reduced risk of payment errors.

Overall, Cash Concentration/Disbursement is optimal for corporations due to its ability to handle large volumes of transactions and facilitate effective cash management strategies.