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Original Credit Transactions, P2P and SWIFT: international payments and their alternatives

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Garry Lovestein
Original Credit Transactions, P2P and SWIFT: international payments and their alternatives

Money transfers: how it looks like


What are OCT, SWIFT, and P2P, and what are they? Let’s sort it out.


The SWIFT system (Society of Worldwide Interbank Financial Telecommunications) is often used for international bank transfers. This is a system for exchanging payment information between banks, to which they are connected.


SWIFT does not "transfer" money from bank to bank (or from account to account), as one might think. This system works as a messaging network. It looks like this:


1. Your bank takes the amount you want to send to itself;

2. The SWIFT system sends instructions to the second bank to allocate funds to the recipient's account;

3. This bank allocates the amount to the addressee and takes the same amount from the account of the sending bank if they are connected. If not, then another bank (or two) is added to this chain, which are intermediaries of the transfer.


In other words, SWIFT is when money comes to you from the bank itself, and not from the person who has an account in it.


Instructions sent by the SWIFT system consist of SWIFT codes (BIC codes). The sender requests them from banks when trying to transfer money abroad.


Currency exchange is usually carried out by one of the banks involved in the process. But in some cases, double conversion is used. It depends on the currency of the sender and the recipient.


But as banks also need to earn, there are commissions. An additional fee may be requested not only for sending but also for receiving the transfer. And if the sender incorrectly specified the data, then they will have to pay extra for clarifying the recipient's details.


Original Credit Transaction: quick money transfer


OCT payments are a type of payment by which money is transferred directly from the sender to the recipient. In this scheme, the SWIFT system is not used, since the primary card is not a bank account in this case.


The most important advantage of Original Credit Transaction is its speed. There is no need to wait for banks to perform the necessary actions. Also, OCT requires only the recipient's card number, which makes it extremely convenient.


OCT is supported by two main card systems: Visa and Mastercard. Initially, it was created to speed up payments by direct transfer of funds to bank cards.


Businesses can use the direct OCT gateway for conveniently paid refunds, while not using confidential data. Their payments are sent in real-time and directly to the bank account of the cardholder.


A similar principle of account replenishment transactions is used by Visa Direct, Mastercard Send, and MoneySend for debiting funds from the card account.


Usually, funds are processed within 24 hours or less, although the processing time may vary depending on the bank.


OСT: who needs it


OCT is needed primarily for those for whom quick and easy settlements are a necessity.


For example, it is extremely convenient for companies that hire freelancers or use partner programs. They often collaborate with people from all over the globe, each of whom may have a different bank. So they use OCT to pay for the work. Given that their circle of professional contacts is constantly replenished, it is important to understand the reliability of their partners. And here quick settlements come in handy. Payments can be divided into parts and sent a certain amount for the completed part of the work. Thus, the risk is reduced.


In addition, OCT payments are useful for brokerage companies. They need to be able to quickly pay or receive money from card to card. Moreover, direct payments make life easier when settling accounts with a lot of traders.


Other specific jobs with an increased level of risk also use OCT on an ongoing basis. These include such professionals as bookmakers, owners of online games, and other representatives of the gaming business.


And of course, OCT is appreciated by businessmen. After all, this is a big time saver, and in any business, time is money.


P2P: from card to card


P2P (Peer-to-peer or person-to-person) is another type of payment. Here money is transferred between individuals. Usually between bank accounts or cards.


The advantage of P2P is the speed and convenience of finding the recipient. It is optional to enter their account number. Their phone number or email address will be enough.


P2P: Risks and blacklist


A lot of scammers have appeared on the Internet. Some of them offer P2P services, while others pose as exchangers already known to people. Therefore, such transactions carry great risks, because you never know where your money goes.


But do not forget to check everything twice, for the sake of your good.


In addition, with the termination of VISA DIRECT and MasterCard Moneysend, all P2P payments take place inside the payment system of Russia. The operations are monitored by banks, which means that any more or less suspicious activity can lead to blocking.


On exchanges, you can often find people who are constantly engaged in transfers. They are sending huge sums on the cards and use droppers. Banks mark their cards, which increases the risk of their verification. That is why many are distrustful of P2P and use the services of financial organizations.


Well, if we talk about a reliable and fast way to transfer money directly, then the masspay exchanger helps out here. Payments are transferred using a highly efficient original credit transaction integrated with the largest banks. More than five hundred transfers are processed per second. And in order not to get caught by the customs officers, follow the direct link to the site: https://masspay.pro.



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