Which of the following is NOT considered a funds transfer system?

The correct response indicates that PayPal is not classified as a traditional funds transfer system in the context of the other options provided. A funds transfer system typically refers to established networks that facilitate the electronic transfer of money between financial institutions.

SWIFT (Society for Worldwide Interbank Financial Telecommunication), ACH (Automated Clearing House), and Fedwire are all recognized as funds transfer systems that operate on a larger, institutional scale. They are designed for the direct exchange of funds between banks and financial entities, ensuring secure and efficient transactions across various levels of banking operations.

In contrast, PayPal operates primarily as a payment service that allows individuals and businesses to conduct online transactions. While PayPal facilitates the transfer of funds, it does so through its own platform and is often used for peer-to-peer or consumer-to-business transactions rather than serving as an institutional transfer network. This distinction in purpose and functionality is why PayPal is not categorized alongside the formal funds transfer systems mentioned.