What payment process does the term 'bulk or batch processing' usually refer to?

The term 'bulk or batch processing' typically refers to the handling of low-value payments. This process allows financial institutions or payment systems to gather numerous individual transactions and process them as a single batch at a designated time, which is efficient for managing smaller amounts of money.

Bulk processing is advantageous for organizations that need to make a large number of similar payments simultaneously, such as payroll, supplier payments, or utility bills, all of which typically involve lower transaction values. By batching these transactions, payment systems can significantly reduce operational costs and increase efficiency compared to processing each payment individually.

In contrast, high-value payments typically require immediate or separate handling due to their significance and potential impact. Immediate payments are processed in real-time, focusing on urgency rather than volumes. International payments often involve complexities such as currency conversions and regulatory compliance, distinguishing them from the straightforward nature of bulk low-value transactions. This understanding underlines why 'bulk or batch processing' is most commonly associated with low-value payments.