What is an AFT? A Simple Guide to Understanding Account Funding Transactions

If you've ever added money to a digital wallet, transferred funds to a prepaid card, or deposited money into an online account, chances are you've used an Account Funding Transaction (AFT)—even if you didn't realize it!

But what exactly is an AFT, and how is it different from a regular card purchase? Let's break it down in simple terms.

What is an Account Funding Transaction (AFT)?

Think of an AFT as a way to pull money from a debit or credit card and move it into another account.

For example, imagine you want to:

• 💳 Load money onto your PayPal account
• 📲 Add funds to a digital wallet like Apple Pay or Google Wallet
• 🏦 Transfer money to an online savings account
• 💰 Fund a prepaid card to use for future purchases

An AFT makes these transactions possible by securely pulling the requested amount from your card and depositing it into your chosen account.

How is an AFT Different from a Regular Purchase?

A regular purchase happens when you pay a merchant for a product or service. You authorize the payment, and the merchant receives the money.

An AFT, on the other hand, is a pull transaction—you're pulling money from your card to store it somewhere else before making any purchases.

Why Are AFTs Useful?

AFTs make digital payments faster, safer, and more convenient. Here's why they're important:

• ✔ Instant Access to Funds – No need to visit a bank or wait for a deposit to clear.
• ✔ More Control Over Spending – Load only what you need onto prepaid accounts.
• ✔ Secure Transactions – Uses card network security to protect your funds.
• ✔ Global Reach – Works with major networks like Visa and Mastercard, enabling international transfers.

How IPS Powers Next-Generation Payments

At IPS, we specialize in simplifying payments for businesses. Whether you need to receive payments in the U.S. or disburse funds worldwide, we offer cutting-edge solutions like:

• ✅ AFT Transactions – Securely fund digital wallets and accounts with ease.
• ✅ Global Payouts – Send money to over 150+ countries using our proprietary network.
• ✅ Payment Orchestration – Optimize approval rates and reduce costs.
• ✅ Tokenization & Fraud Protection – Keep transactions secure without PCI compliance worries.
• ✅ Flexible Payment Options – Accept card, ACH, and recurring payments with ease.