An Original Credit Transaction, or OCT, is a type of payment in which businesses can send money directly to a customer’s card account. Unlike traditional card payments that pull money from the customer, original credit transactions push money out, making them ideal for payouts, refunds, or instant transfers. They're fast, secure, and often used by fintech apps, gig platforms, and online marketplaces.
An Original Credit Transaction, or OCT, is a type of payment in which businesses can send money directly to a customer’s card account. Unlike traditional card payments that pull money from the customer, original credit transactions push money out, making them ideal for payouts, refunds, or instant transfers. They're fast, secure, and often used by fintech apps, gig platforms, and online marketplaces.
Here’s what is a credit transaction in simple terms: A company tells its payment provider to send money to someone’s debit or prepaid card. The bank checks if the card can receive funds. If all are good, the money is deposited—sometimes in just minutes. The person doesn’t have to do anything but wait for the funds to land in their account.
Original credit transactions are fast, easy, and convenient. Merchants use them to pay out earnings, issue refunds, or send rewards quickly without needing the customer’s bank account number. People like them because they don’t have to wait days for a transfer or deal with extra steps.
Original credit transactions are used across many industries. Freelancers often receive project earnings this way. Ride-share drivers get paid at the end of a shift. E-commerce companies issue refunds without delay. Insurance companies use OCT to disburse claims directly to policyholders. Loyalty programs and cashback offers are also commonly paid out through original credit transactions. Its versatility makes it a go-to solution for many real-time financial interactions.
While Original Credit Transactions offer speed and convenience, they come with specific requirements that businesses must understand before adopting them.
Not every card can receive original credit transactions payments. Some debit or prepaid cards, especially those issued outside supported regions, may be excluded. Businesses must confirm with their payment provider which card types are accepted and be aware that daily limits or transaction caps may apply. Sending funds without verifying eligibility can result in failed payments and a poor customer experience.
In the UK, companies must follow rules like KYC (Know Your Customer) and AML (Anti-Money Laundering). When processing payouts, you need to ensure that you comply with all relevant financial regulations.
OCTs require solid tech infrastructure. Your platform must integrate with payment processors that support original credit transactions and manage fraud protection and real-time reporting.
OCTs send money to the customer. Traditional card payments take money from the customer.
Many are processed within 30 minutes. Depending on the bank, some may take up to a few hours.
Yes, but they’re usually lower than wire transfers or manual payment methods. The exact cost depends on your payment provider.
No. Once the money is sent and accepted, it can’t be reversed. If needed, you’d have to initiate a new refund or payment.
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