Visa Developer Community

Highlighted
Regular Visitor

Originator obligations

What financial obligations do the originator have when transferring funds (AFT, OCT) from card to card?
4 REPLIES 4
Highlighted
Visa Dev Moderator

Re: Originator obligations

Hey @shico2000,

 

It appears that your question is referring to Visa Direct - https://developer.visa.com/capabilities/visa_direct

 

Here's the Visa Direct Documentation - https://developer.visa.com/capabilities/visa_direct/docs-getting-started

 

Below is some information you will find useful as an originator looking to to transfer funds using Visa Direct. If I find additional information related to your question, I'll send you a follow up post to let you know.

 

All Visa Direct programs require the originator to be a licensed Visa acquirer or be sponsored by a licensed Visa acquirer who is ready and able to sponsor Visa Direct programs. Please reach out to your Visa account representative to get more information about Visa licensing requirements.

We would like to know do you have any exsisting relationship with VISA? Are you using any API or connected through VisaNet? An Acquiring BIN and its Country Code. This is the Bank Identification Number (BIN) that is used to clear and settle the transaction within Visa and the country in which it is licensed for use. If you are a financial institution (or have a Visa acquirer POS license), you can decide which of your licensed BINs you will use for funds transfer activity. This should be a unique BIN that is not shared with any other Visa service. If you are a sponsored third-party Originator, your sponsoring financial institution will assign an Acquiring BIN to you when you establish your acquiring relationship with them. You can obtain a test Acquiring BIN on your Application Dashboard for use in sandbox testing, but you will need to register your actual Acquiring BIN(s) with Visa during production onboarding.


It should also be noted that a Visa Direct program requires the originator to ensure that all stages of transaction processing including transaction submission, financial settlement, dispute management, reporting are in place and effectively managed before launching a Visa Direct program using the APIs. The APIs available on the Visa Developer platform help to manage certain stages of the transaction specifically those related to financial transaction submission. The originator needs to be aware and ensure that the necessary capabilities are in place to support the complete transaction cycle. Only originators who can account for every aspect of the payment stack will be allowed to move their projects into production.

Completion of a Visa Direct Program Implementation Questionnaire has been provided and it is meant to aide originators in determining if they are prepared with the necessary elements to offer a full service Visa Direct program and move their project into production. Based on responses to the questionnaire, Visa may be able to provide insight or guidance to finding enabled acquirers and partners that may be able to help move projects and programs into production.

Besides that, it is important to remember that all OCTs are considered good funds the minute the transaction is submitted to Visa. In other words, because OCTs are not allowed to be reversed by the originator (acquirer), the funds are considered “good funds” for the recipient issuer; i.e., the issuer can be confident that these funds will be settled during normal settlement processes with Visa.

OCTs cannot be reversed by an originator (VIP can do timeout reversals though). However, originators can submit adjustments (processing code 22) in lieu of reversals.

 

Funds availability, conversation rules, and funds transfer limits are based on the rules establish by the originator (you) through APP and acquirer bank.

In order to participate, all OCTs are initiated by originators. Originators are Visa acquirers or third party agents (e.g., payment facilitators, load partners, merchants, etc.) sponsored by a Visa acquirer that send the OCT to an issuer through VisaNet/Visa systems.  Do you have an acquiring BIN which will be used for Visa Direct transactions?

 

Visa Direct APIs are capable of going global, therefore, it's available in all regions. Visa API does support international money transfer through Visa Direct. Visa supports all currencies that an acquiring bank can support. For example, if the transaction is originated in Brazil(Brazilian currency) funds pull will be in Brazilian currency and the acquirer will push funds to a Visa Issuer's account in the receiving card account's home currency (e.g. US Dollars). The Acquirer is responsible for the network conversion fees and the originator(you) will be responsible for incorporating that in your App.

 

Visa Direct is a peer-to-peer payment platform and is capable of handling bill payments and money transfer between cards. This is why Visa Direct APIs are a popular choice among many many developers today!

 

 



Was your question answered? Don't forget to click on "Accept as Solution" to help other devs find the answer to the same question.

Thanks,
Diana

Highlighted
Regular Visitor

Re: Originator obligations

Thank you very much for your response!
I am trying to understand the process of transferring funds from the point of view of the originator.
But so far I have not developed a holistic picture.
It would be more visual to present this process visually in the form of an ERP scheme, for example.
Highlighted
Visa Dev Moderator

Re: Originator obligations

Hey @shico2000,

 

Thanks for your valuable feedback! We will work to better the way we communicate this topic of discussion on transferring funds from the point of view of the originator. We appreciate and value your feedback. 

 

Please let us know if you have other questions.

 



Was your question answered? Don't forget to click on "Accept as Solution" to help other devs find the answer to the same question.

Thanks,
Diana

Highlighted
Helper

Re: Originator obligations

 The Loan Origination Vehicle's lending business is funded by the issuance of debt securities to investors. The debt securities are secured on the portfolio of loans, which is originated over a defined ramp-up period, by the Loan Origination Vehicle and are limited recourse obligations of the Loan Origination Vehicle.

check it here download for iPhone