In the context of payment acceptance and processing, closed loop systems:
A) include additional payment processing units.
B) involve paying the merchants directly.
C) work similar to an open loop system.
D) make use of an intermediary, such as a bank.

Question

Quizplus · Accepted Answer

Closed loop systems involve direct payments to merchants without the need for intermediaries like banks, distinguishing them from open loop systems that involve multiple parties and processing steps.

In the Context of Payment Acceptance and Processing, Closed Loop