Accredited ACH Professional (AAP) Practice Exam

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Prepare for the Accredited ACH Professional (AAP) Exam with tailored questions and study materials to enhance your understanding of ACH transactions and operations. Test your skills and readiness for this important certification!

Practice this question and more.

Which payment system is specifically used for real-time settlement of large-value payments?

ACH Network
Card Payment System
Fedwire Funds Service
Check Payment System

The correct answer is: Fedwire Funds Service

The Fedwire Funds Service is specifically designed for the real-time settlement of large-value payments. It provides a secure and efficient way for banks and financial institutions to transfer funds among themselves, typically on behalf of their customers or for interbank transactions. This system operates in real time, meaning that transactions are settled immediately upon initiation, which is crucial for large-value payments that require prompt availability of funds. In comparison, the other options serve different purposes. The ACH Network focuses primarily on batch processing of low to moderate-value transactions, making it less suitable for immediate high-value transfers. The Card Payment System is mostly used for consumer transactions, typically involving smaller amounts and requiring different settlement processes. The Check Payment System, while it can handle various payment amounts, does not provide real-time settlement and instead relies on a check clearing process that can take longer to finalize.