Which statement is true about batch processing in payment posting?

• A. It processes payments individually, not in batch
• B. It has no effect on guarantor accounts
• C. It posts payments to guarantor accounts during batch processing
• D. It is optional and rarely used

Answer: (C)

Batch processing groups many payments and applies them to the right guarantor accounts in a single run. This means postings are applied to guarantor balances as part of the batch, which is how multiple payments are efficiently posted without handling them one by one.

Because batch processing is about handling multiple payments at once, the statement that it posts payments to guarantor accounts during the batch run is the accurate description. Posting individually would be real-time or manual entry, not batch, and batch processing does affect guarantor accounts by updating their balances. It’s also a common, routine method for handling large volumes of payments, not something optional or rarely used.