What are the primary U.S. payment systems and their roles?

• A. ACH processes batch electronic payments; Fedwire settles large-value transfers in real time; card networks handle consumer payments
• B. Fedwire processes batch payments; ACH handles real-time payments
• C. Card networks settle large-value transfers in real time
• D. RTGS is used for consumer payments

Answer: (A)

The main idea is recognizing the three primary U.S. payment rails and what each does. ACH handles batch electronic payments—think payroll, vendor payments, and consumer bill payments processed in groups rather than instantly. Fedwire is for large-value transfers between banks with real-time gross settlement, meaning each transfer is settled immediately and final as soon as it’s sent. Card networks (Visa, Mastercard, etc.) manage consumer card payments by facilitating the authorization, clearing, and settlement between issuers and acquirers, enabling everyday debit/credit card purchases.

This combination matches how the U.S. payment system is typically organized: ACH for batch payments, Fedwire for large, time-sensitive transfers, and card networks for consumer card transactions. The other options mix up batch versus real-time roles or misstate who handles consumer versus interbank payments.