What do ACH Operators manage in the payment system?

ACH Operators play a critical role in the payment system primarily by facilitating the communication between various financial institutions. They serve as intermediaries that manage the electronic transfer of funds, ensuring that ACH credits and debits are accurately routed to the appropriate receiving banks. By overseeing the technical aspects and ensuring compliance with rules and regulations, ACH Operators help maintain the smooth functioning of the ACH network.

The other options misrepresent the specific functions of ACH Operators. For instance, while bank drafts and direct deposits fall under ACH transactions, the initiation of these processes is primarily managed by originators and banks, not the ACH Operators themselves. Additionally, the settlement of checks is not within the scope of ACH operations, as checks and ACH transactions are governed by different systems and processes. Thus, the critical function of ACH Operators is indeed managing communication between financial institutions within the ACH framework.