What are the two main types of international payments commonly recognized?

The identification of credit transfer payments and wholesale financial institution transfers as the two main types of international payments is grounded in a comprehensive understanding of how international transactions are processed in the financial ecosystem.

Credit transfer payments refer to the mechanism where funds are executed through a payee's account based on the payer's instruction, commonly utilized by individuals and businesses for sending money across borders. This mode is fundamental in international payments as it facilitates direct transactions between parties without the need for intermediaries.

On the other hand, wholesale financial institution transfers are large-volume transactions that are typically conducted between banks or financial institutions. These transfers deal with substantial sums of money and often involve the settlement of trade, investments, or interbank obligations. Such transactions are critical for maintaining the liquidity and operational efficiency of financial markets.

The other options highlight different aspects of payment systems but do not accurately present the most recognized categories of international payments. For instance, customer credit transfers and interbank transfers encompass specific functions rather than broad categories, while consumer credit payments and government payments mix unrelated payment types without capturing the foundational mechanisms of international finance. Wholesale transfers and retail payments touch on important distinctions within the market but do not align precisely with the conventional classification recognized within the field of international payments.