BAFT Certificate in Principles of Payments (CertPAY) Practice Test

Types of low-value payments typically involve transactions that are processed in bulk, are less time-sensitive, and have a lower monetary value compared to large-value or high-value payment systems. The correct answer identifies Bacs and Nacha payments as examples of such low-value payment systems.

Bacs, primarily used in the UK, allows for bulk payments such as salaries and vendor payments, typically processed over several days. Similarly, Nacha payments (the National Automated Clearing House Association in the U.S.) facilitate direct deposits, bill payments, and other low-value transactions through the ACH (Automated Clearing House) network, also designed for non-urgent, smaller payments.

In contrast, the other options describe systems that do not primarily focus on low-value transactions. SWIFT and treasury payments often deal with international funds transfers and may involve significant amounts. RTGS (Real-Time Gross Settlement) and large-value payments are explicitly designed for high-value transactions processed in real time, while wire transfers and foreign exchange payments (FX) also typically cater to larger sums and require immediate processing. Therefore, Bacs and Nacha stand out as the appropriate types of low-value payments.