What is a common requirement for direct participants in payment systems?

Maintaining a settlement account is indeed a common requirement for direct participants in payment systems. A settlement account is crucial because it enables these participants to facilitate transactions by holding funds that can be used to settle obligations between different entities within the payment system. This account serves as a mechanism to ensure that when one participant initiates a transaction, the necessary funds are readily available to complete that transaction promptly and securely.

This requirement is essential for maintaining the liquidity and efficiency of the payment system, as it allows for real-time or on-demand settlement of transactions. Without a settlement account, direct participants would struggle to meet their obligations, leading to delays and potential risks within the payment ecosystem.

Other options present requirements that are not as universally applicable or essential for all direct participants in payment systems. For instance, hiring external auditors may be necessary for compliance and oversight, but it is not a standardized requirement for participation in all payment systems. Similarly, processing low-value payments exclusively does not align with the operational capabilities expected from direct participants, as they are often required to handle a wide range of payment types and values. Lastly, while following standards is important for interoperability, the notion of flexible standards does not capture the need for rigid adherence to established protocols that maintain the integrity and security of payment systems