Question

The ___________ is an electronic transfer system which provides certainty of settlement on an item-by-item basis as payment messages are accepted in real time.

Answer 1

The electronic transfer system ensures direct and immediate fund transfer between bank accounts, often through a debit card transaction, providing certainty of settlement for each payment.

Step-by-step explanation:

The electronic transfer system referred to in the question is a mechanism used by banks and financial institutions to ensure the immediate and direct transfer of funds from one bank account to another. This happened in real-time, as with a debit card transaction, which is similar to writing a check but with the funds being transferred electronically from the payer's bank account directly to the seller. Unlike a credit card, which represents a short-term loan from the credit card company to the user, a debit card withdraws money immediately from the user's bank account, thus providing certainty of settlement on each transaction. These systems support the payment infrastructure of an economy by allowing for the exchange of goods and services for money, working as a store of value, and facilitating the standard of deferred payment