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.
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[101] Explaining the confusing money movement…
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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.