An AFT (Account Funding Transaction) is a type of transaction used in the financial industry where a payment service provider, such as a bank, directly debits a payment from a cardholder’s account. This is typically used for services like loading funds (prepaid cards, e-wallets, or other financial accounts).
This is called a “pull” transaction because the payment service provider “pulls” the funds from the card owner. On the other hand, we have “push” transactions, which is when the payment service provider sends money somewhere else.
The benefits
- Speedy Transactions: AFTs redefine the meaning of swiftness in finance. Unlike traditional bank transfers, AFTs travel the digital world at lightning speed, making them the 1st choice for merchants.
- Global Reach: With AFTs, the world truly becomes yours. Expanding across approximately 200 countries where Visa and Mastercard are accepted, AFT payments offer a global solution for businesses of all sizes.
- Enhanced Security: AFTs provide an added layer of protection against fraud and unauthorized transactions. Both businesses and consumers can rest assured knowing that their financial transactions are safeguarded by cutting-edge fraud detection.
Discover our article about Security!
- Versatility: From peer-to-peer transfers to digital wallet top-ups, AFTs excel in versatility. Whether loading prepaid cards or facilitating marketplace payouts, AFTs adapt to a wide array of payment scenarios with ease, providing unparalleled convenience for users across various platforms.
- Trackability and Transparency: Every AFT comes with a unique transaction identifier, simplifying tracking. Businesses benefit from the traceability offered by AFTs, ensuring transparency and accountability every step of the way.
- Unmatched Convenience: The fact that consumers can receive funds directly on a card is a huge benefit, this is more convenient than any other method.
The Benefits for Merchants
For merchants, AFTs provide the capability:
- To manage customer accounts
- To ensure they have sufficient funds for completing transactions
- To complete transactions swiftly and seamlessly
- To reduce the risk of fraud
- To offer an easy payment method for customers
- To improve the customer experience
To conclude, AFT transactions stand as a powerful tool in the landscape of financial transactions. With their unparalleled speed, security, trackability, and many others, AFT offers many benefits for both businesses and consumers. Stay tuned as we delve into OCT transactions on the TCB Pay Blog.
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