What type of payment is usually processed on a deferred net settlement basis?

ACH payments, or Automated Clearing House payments, are typically processed on a deferred net settlement basis. This means that transactions are accumulated and settled in batches at specified intervals rather than settling each individual payment immediately. The deferred net settlement process helps manage liquidity and streamline the overall settlement of numerous transactions, which is particularly efficient for lower-value transactions that do not require immediate settlement like those often found in the ACH system.

In contrast, other types of payments such as urgent cash payments or high-value payments may require real-time or same-day settlement due to their importance and immediacy, while international wire transfers often necessitate immediate settlement due to cross-border transactional requirements. Thus, ACH payments stand out for their characteristic of deferred net settlement, optimizing efficiency for the volume of transactions processed.