An original credit transaction is a real-time transfer of funds to a credit card. In this push transfer, money is sent immediately to the card-holder’s account as a credit. The original credit transaction (OCT) works in conjunction with an account funding transaction (AFT). An AFT is the debit side of the transfer.
Visa Direct and Mastercard Send uses OCT transactions to quickly send credit transfers. This is a person-to-person payment which can be utilized to pay bills and disburse funds.
Companies who want to have efficient payments to employees, especially on a large scale, can enroll in an original credit transaction service. It’s very useful for transportation drivers such as the Uber model, freelance employers, or other companies that create numerous payouts for people and employees on the platform.
Immigrant transfers also known as remittances is money sent across countries, often back home to families. It can also be used to pay for outsourcing or offshoring work. This is often less expensive than the costs wire transfers can impose, and many people are using it as an alternative to costly exchanges through banking channels.
OCT transactions can be used in a number of situations:
Promotional Offers – Some credit cards give back money for using them. When they pay you back the funds for a cash card, they use an OCT transaction to credit your card.
Wallet Transfers – Wallet transfers are instant funding that travels from one user account to another. Venmo, Paypal, and CashApp are all wallets that use this technology.
Merchant Payments – If a merchant needs a credit to their account, you can use an OCT transaction to send them funds.
Prepaid Cards – Prepaid cards are loaded with credit and are run as credit or debit cards. Adding money to this requires a credit increase which is an OCT transaction.
Sending Money – You can send money to someone’s card directly and instantly. It’s deducted from your account and transfers to their credit card.
To sign up for a Visa Direct transaction, you’ll want to go to Visa Net and login. Visa Direct programs have to be approved by Visa so there is a short process in applying. They have a Programme Information Form which details all the most important points about getting this OCT tool for your business.
To sign up for Mastercard MoneySend, you’ll need to fill out a specific form to apply, it’s called the Mastercard MoneySend Participating Institution Form. Be sure your business complies with the terms and conditions outlined in the agreement. Included in those regulations are rules regarding international transfers and avoiding fraud.
Tokenization is when a website or application saves your credit card information so you don’t have to enter your credit card number after it’s been saved. It remembers your data and protects it using security measures in order to safely store the information. Tokenization is what speeds up OCT transactions, and it’s also responsible for quick online purchases such as one click buying or instant ordering.