What are OCT Transactions?

What are OCT Transactions?

Have you ever received money directly onto your debit or credit card without having to wait? You might have been a beneficiary of an Original Credit Transaction (OCT). But what exactly is it, and why is it so handy?


OCTs are simply real-time money transfers that go directly onto your payment card, such as a Visa or Mastercard. Instead of waiting for the money to reach your bank account, it's credited straight to your card. This means you can spend or withdraw the money instantly, without having to wait for the usual bank transfer timelines.

Conversely, AFT transactions often involve the automatic debit or withdrawal of funds from one account to another within the banking system. 


To learn more about AFT Transactions, read our article.


These transactions offer different benefits:


1. Speed: OCTs are much faster than traditional bank transfers. This is great for businesses that need to disburse funds quickly, like for refunds or rewards.

2. Simplicity: Receiving money directly onto your card is much simpler than waiting for a check or going to the bank. The funds are immediately available for use.

3. Cost-effectiveness: In many cases, OCTs are cheaper than other payment methods. They help reduce administrative costs associated with paper checks, for example.

4. Global Reach: OCTs enable global payments, as long as the recipient's card is part of a participating network, like Visa or Mastercard.

5. Traceability: Each OCT comes with a unique transaction identifier, making it easy to track and reconcile payments.


In summary, Original Credit Transactions are a simple and fast way to receive money on your payment card. They offer a convenient alternative to traditional bank transfers, with significant benefits for both businesses and consumers.


Love the article? Check out more blog posts about payment here.