What Is Push to Card and How Does It Work?
Learn about Push to Card: a key digital payment method enabling instant, secure fund transfers directly to debit or credit cards for various uses.
Understanding Push to Card
Push to Card technology enables the direct transfer of funds to a recipient’s debit or credit card. This method allows a payer to actively send money to a cardholder, providing a rapid solution for various financial transactions.
This system differs from traditional “pull” payments, where a payee initiates a request to withdraw funds from an account, such as a typical purchase or direct debit. With Push to Card, the payer maintains control, actively “pushing” money to the card. This makes the technology primarily used for payouts and disbursements. The process leverages existing, secure card network infrastructures, including those operated by Visa and Mastercard. These networks facilitate transfers by reversing the usual transaction flow.
How Push to Card Works
A Push to Card transaction begins when a sender, such as a business or an individual, initiates a payment. This involves providing the recipient’s 16-digit card number and expiration date.
The payment request travels through a payment processor and onto card networks, such as Visa Direct or Mastercard Send. These networks facilitate “original credit transactions” (OCTs). Funds move from the sender’s bank or payment service provider, through the card network, to the recipient’s issuing bank, which then credits the account linked to the card.
This process operates similar to a reverse card purchase. Funds are made available to the recipient in near real-time, often within seconds or minutes, though some network service agreements allow up to 30 minutes for funds to be posted. The underlying technology incorporates advanced encryption and tokenization to protect cardholder data, enhancing transaction security.
Common Applications of Push to Card
Push to Card technology is widely applied due to its speed and convenience. In the gig economy, platforms issue instant payouts to workers, ensuring quick earnings after tasks. This improves worker satisfaction and cash flow.
Insurance companies use Push to Card for claims disbursements, allowing policyholders to receive rapid funds, especially in emergencies. This provides immediate financial relief and enhances customer experience. Businesses also use it for refunds, reducing wait times and improving satisfaction.
The technology is used for loan disbursements, enabling financial institutions to get approved funds to borrowers quickly. Online marketplaces and businesses leverage Push to Card to provide faster settlements to sellers and affiliates, improving liquidity and operational efficiency. It also supports peer-to-peer (P2P) transfers, allowing individuals to send money to friends and family through various applications.