What is a key benefit of host-to-host file transmission?

Study for the BAFT Certificate in Principles of Payments Test. Utilize flashcards and multiple-choice questions, with hints and explanations for each query. Prepare thoroughly for your exam!

The key benefit of host-to-host file transmission is that it allows for a high degree of automation and secure communication. This method enables organizations to connect their systems directly, eliminating the need for manual handling of transactions. By automating the process, businesses benefit from increased efficiency, reduced errors, and enhanced speed in transactions. Additionally, host-to-host communication often involves secure channels and encryption methods, ensuring that data is transmitted safely and confidentially.

In contrast to this option, requiring manual input for all transactions contradicts the essence of what host-to-host file transmission aims to achieve, which is automation. Simplifying the way checks are written doesn’t directly relate to the overarching benefits of host-to-host file transfers, and stating that it eliminates the need for ERP systems overlooks the fact that these systems often still play a critical role in managing business processes even with direct file transfers in place.

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