What is the primary purpose of an automated clearing house (ACH) filter?

The primary purpose of an automated clearing house (ACH) filter is to allow account holders to set specific criteria that ensure only authorized transactions are processed. This functionality significantly enhances security measures for bank accounts by enabling users to specify which transactions are permissible based on predetermined parameters. For instance, account holders can establish limits on the types of transactions that are allowed, ensuring that only payments from recognized and trusted sources can be processed.

This proactive approach helps to prevent unauthorized or fraudulent transactions, safeguarding account holders from potential financial loss due to erroneous or malicious activity. By utilizing ACH filters, businesses and individuals can manage their account exposure and maintain a tighter control over their electronic payment processes.

The other options relate to different functions or uses that do not represent the primary role of ACH filters. For example, while options like matching incoming payments with expected payments may be important in financial management or auditing, they do not encapsulate the core purpose of an ACH filter.