What Are Account Funding Transactions?
Account Funding Transactions (AFTs) are a type of card transaction used to pull money from a cardholder’s account and move it into another account. AFTs do not represent a purchase of goods or services. Instead, they are used to support financial transfers such as:
- Adding money to a digital wallet
- Loading a prepaid card
- Sending money to another person
- Transferring funds into a brokerage account
AFTs follow specific Visa and Mastercard rules and require merchants to submit additional data to classify the transaction correctly.
Who AFTs Are Designed For
AFTs are designed for financial services and fintech platforms that need to accept card-based funding. Common examples include:
- Person-to-person (P2P) payment apps
- Digital wallet providers
- Prepaid card programs
- Brokerage or investment platforms
If your business depends on account transfers rather than product purchases, you may need AFT support.
Why AFTs Are Important
AFTs must be properly identified and submitted to comply with card-brand requirements. Correct classification helps:
- Prevent Card-Brand Non-Compliance - Visa and Mastercard require AFTs to include specific indicators. Missing or incorrect information may result in non-compliance fees, such as Mastercard Edit 29.
- Reduce Risk and Fraud - AFTs allow card brands to apply the correct risk controls for financial transfers, which differ from standard retail transactions.
- Support Modern Fintech Use Cases - Accurate AFT support enables partners to offer digital wallets, P2P transfers, and other emerging financial services through NMI.
Platform and Card Brand Support
Account Funding Transactions are supported only in specific environments. AFTs are currently supported on the TSYS platform and only for Visa and Mastercard cards. Additionally, only certain Merchant Category Codes are permitted to process AFTs. For a full list of supported MCCs, please visit our developer documentation.
API Availability
AFTs are supported through:
- Transaction API
- Batch API
- Query API
Note: AFTs cannot be submitted through the Virtual Terminal because the required fields are not available in the interface.
Required Data for Each AFT
Card brands require merchants to provide specific information for every AFT transaction.
- Business Application Identifier (Visa)
- Transaction Type Indicator (Mastercard)
These fields describe the overall transaction type (e.g., “Person to Person payment” or “Transfer to Own Account”).
Recipient Name - Full name of the person or entity receiving the funds (only required for Mastercard)
These identifiers help card brands classify the transfer type. Missing or incorrect values may cause the transaction to fail or trigger compliance issues.
Full detail, including field names, descriptions, and example request, are available in our developer documentation. You can reference the complete list of AFT-related fields there, including the identifiers required for Visa and Mastercard.
Common Errors and How to Resolve Them
Invalid or Missing Identifier:
If the merchant sends an identifier that is not valid for:
- the card brand, or
- the merchant’s MCC
The transaction may not be accepted by the processor.
What to check:
- MCC is eligible
- Visa BAI or Mastercard Transaction Type Indicator is correct
- Mastercard recipient name is included (Mastercard only)
Merchant Not Registered
Some merchants may need to be preregistered with card brands through TSYS before they can submit AFTs. Please ensure the merchant has been registered with TSYS to support AFTs.
Unsupported Processor
AFTs work only on TSYS processor, at this time. Merchants using other processors cannot submit AFTs.
Frequently Asked Questions
Are AFTs currently available? Yes. AFTs are live for qualified merchants processing on TSYS processor.
Can AFTs be submitted through the Virtual Terminal? No. Required AFT fields are only available through the API.
Do AFTs appear in standard settlement and transaction history? Yes. They appear alongside normal sales, but AFT fields are also included in logs and reporting.
Is this the same as an Original Credit Transaction (OCT)? No. AFTs pull funds from the cardholder’s account. OCTs push funds to the cardholder’s account. NMI does not currently support OCTs.