[101] Explaining the confusing money movement for AFTs and OCTs
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AFTs are Account Funding Transactions. They are initiated by an originating bank (acquiring bank) and they fund that bank’s balances. In cash flow terms, they are a credit to the originating banks balances and debit the other bank. They are a "pull" transaction - pulling money into the account. When AFTs occur, the originating bank (acquirer) pays fees to the network and the other bank (issuer) gets interchange.
[101] Explaining the confusing money movement for AFTs and OCTs
[101] Explaining the confusing money movement…
[101] Explaining the confusing money movement for AFTs and OCTs
AFTs are Account Funding Transactions. They are initiated by an originating bank (acquiring bank) and they fund that bank’s balances. In cash flow terms, they are a credit to the originating banks balances and debit the other bank. They are a "pull" transaction - pulling money into the account. When AFTs occur, the originating bank (acquirer) pays fees to the network and the other bank (issuer) gets interchange.