An FT payment, or Funds Transfer, is a transaction where money is moved from one party's account (the remitter) to another party's account (the beneficiary). This process, while potentially involving multiple steps, is treated as a single, complete transaction.
Here's a breakdown of what constitutes an FT payment:
- Remitter: The individual or entity initiating the payment and from whose account the funds will be debited.
- Beneficiary: The individual or entity receiving the payment and to whose account the funds will be credited.
- Funds Transfer: The actual movement of money between the remitter's and beneficiary's accounts. This transfer can occur through various mechanisms, including:
- Bank Transfers: Direct transfers between bank accounts.
- Wire Transfers: Transfers facilitated through a network of banks, often used for international transactions.
- Online Payment Platforms: Services like PayPal, Venmo, or Zelle that enable electronic fund transfers.
- ACH (Automated Clearing House) Transfers: Electronic network used for domestic US transactions.
- Contractual Agreement: While not always formalized in writing, an implicit agreement exists for the transfer of funds based on agreed-upon terms and conditions.
Examples of FT Payments:
- Paying a vendor for services rendered.
- Sending money to a family member.
- Making an online purchase.
- Receiving a salary from an employer.
In summary, an FT payment represents a complete transaction involving the movement of funds from one party to another, regardless of the specific method used to facilitate the transfer.
