In electronic payment processing, after a credit card transaction is authorized, which type of system is commonly used to process settlement statements in bulk?

Introduction / Context:
Every time a customer uses a credit card at a shop or online, there is a detailed set of steps that takes place behind the scenes. First the transaction is authorized, which means the issuing bank checks whether the card is valid and whether sufficient credit is available. After authorization, the settlement stage starts, where many transactions are collected, calculated and sent between banks and payment processors. This question asks you to identify the type of system that is commonly used to process large numbers of such settlement statements efficiently.

Given Data / Assumptions:

• The transaction has already been authorized by the issuing bank.
• An authorization code has been sent to the merchant.
• The question now focuses on the settlement stage.
• Settlement involves processing many transactions, usually together.
• The options include several generic system types.

Concept / Approach:
In payment processing, settlement is rarely done one transaction at a time in full real time because that would be inefficient and costly for large volumes. Instead, merchants and payment networks typically collect many authorized transactions over a period, such as a day, and then process them together. A system that processes jobs in groups at scheduled times is called a batch processing system. Batch processing is ideal when the timing can be slightly delayed, but accuracy and efficiency for large volumes are critical. Therefore, among the options, batch processing system best describes the settlement stage.

Step-by-Step Solution:
Step 1: Note that the question talks about settlement, not initial authorization.Step 2: Recognize that settlement usually includes many transactions for many customers and merchants.Step 3: Recall that batch processing is defined as executing a group of jobs together at a scheduled time.Step 4: Compare this definition with multitasking, which is about running multiple tasks on a single system, not about banking settlement.Step 5: Observe that memory processing and level processing are not standard names for transaction settlement systems.Step 6: Conclude that the correct type is a batch processing system.

Verification / Alternative check:
To verify, think about your credit card statement. You usually see many transactions grouped by date, and they appear after some delay. Banks close their processing day, gather all authorized transactions and then run settlement jobs to update balances, exchange clearing information and charge merchants. This is the classic pattern of batch processing: a large amount of input data is accumulated and then processed together. Payment industry documentation and banking technology studies often describe settlement systems as batch oriented. This supports the selection of batch processing as the correct answer.

Why Other Options Are Wrong:

• Option A, multitasking system, refers to the ability of an operating system to run several tasks at the same time, not to a financial settlement method.
• Option B, memory processing system, is vague and not a standard term in transaction processing.
• Option C, level processing system, is also not a recognized category in this context and appears meaningless.
• Option E, real time single transaction system, describes the authorization step more than the settlement stage, which is generally not performed per transaction in real time for large volumes.

Common Pitfalls:
Candidates sometimes confuse authorization with settlement and choose a term that sounds more real time or high tech. Another pitfall is being distracted by unfamiliar but impressive sounding phrases such as level processing, which do not actually exist as standard terms. To avoid these mistakes, always separate the phases of the transaction life cycle and match each one with the correct processing model. Settlement usually aligns with batch processing in real world banking systems.

Final Answer:
The correct answer is Batch processing system.