02/03/2022

What are Push-to-Card payments?

By Mariana Almeida Marques

Push-to-Card payments are widely used to move money instantly from one card to another. Even though this payment type is already popular both within Peer-to-Peer (P2P) and Business-to-Consumer (B2C) transactions, the term “Push-to-Card” may be new to some. In this article, we discuss what is Push-to-Card, its usages and advantages.

Push-to-Card definition

Push-to-Card refers to a payment initiated by the payer. It is a payment solution that allows a cardholder to actively send or “push” money to another cardholder. Push-to-Card is the opposite of pull payments, a payment type in which funds are pulled from account to the other. Pull payments are initiated by the payee, who is authorised to collect or “pull” money from other account to his own account. In this case, the payers don’t move the funds themselves, and the money is taken out of their accounts automatically. A good example of pull payments is Direct Debit, where customers authorise a company to remove money from their accounts automatically on an ongoing basis.

In Push-to-Card, payers actively push their money to another card. This payment type is most commonly used for Peer-to-Peer (P2P) payments, but it can also be used for disbursements. Money is transferred through card networks such as Visa and Mastercard, using only their credit or debit card numbers.

Payment references are important for companies to match the payment with the customer account.

Push-to-card transactions are essentially sent through the card networks in reverse, from the sender (in case of disbursements to the merchant) through their acquiring bank or payment service provider to the customer’s issuing bank, in real time. As a result, customers have instant access to the funds in their account. Both Visa and Mastercard offer push-to-card services (Mastercard Send and Visa Direct programs).

Advantages of Push-to-Card payments

Push-to-Card payments are extremely simple and practical. Firstly, payers only need the payee’s card details to initiate the payment. Secondly, the payment is settled in real-time, faster than a traditional bank-to-bank transfer. This makes it highly convenient not only to pay to peers, but also to receive disbursements from companies. Insurers in particular can really benefit from Push-to-Card payments, because it is a much faster and easier way to pay out claims to their customers.

Bank-to-bank transfers, although still a popular way to pay out to customers, may take a few working days to be processed. Push-to-Card enables customers to receive their payments instantly and have the funds immediately available in their wallets. Depending on the situation that your customers are in, the immediacy of funds may make all the difference, and turn a stressed customer into a satisfied one.

BNPL services let customers pay later for their purchases.

How Imburse can help

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

Author

Mariana Marques

Mariana is a content writer at Imburse, specialising in Finance and Technology topics.

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