Question

1. Describe the components of the U.S. payment system

2. Summarize the major legislation regarding product offerings and geographic scope of depository institutions

Answer 1

We have 5 components for US Payment System

• Commercial Cards:- This component give business most return on the time via use of Electronic Accounts Payable ie Non Plastic Cards used to pay for invoiced goods.
• ACH Payments:- They use batch processing where individual transactions are created and then batched as one or more for many release to Bank
• Bill Payments:- This mode is used for mid sized payment ie Rucurring expenses.
• The back end stuff:- An automated payment platform integrating the bill payment and accounting systems with the purchase control portal securing generates virtual accounts for purchase requests.
• Wire Transfer:- Wire transfers are used to make payments to domestic and international high value with the direct bank-to-bank payments and certain ad-hoc and one-time payments.