Account Funding Transactions: What They Are & How Businesses Use Them in Digital Payments

You’ve undoubtedly heard of account funding transactions, or AFTs for short, if your company accepts online payments. Account funding transactions, which allow companies to transfer funds safely and effectively across digital platforms, have swiftly become crucial in many industries. However, what is an AFT exactly, and why is it becoming so significant, particularly in rapidly evolving industries like gambling, forex, and cryptocurrency?

We’ll explain account funding transactions in this guide, along with how they operate and why they’re rapidly taking the lead as the most popular method of money transfers online. We will also discuss some significant changes that occurred in 2025 and what your company must do to remain competitive.

What Is an Account Funding Transaction?

An account funding transaction (AFT) is a type of digital payment that allows someone to move money from their card – usually a debit or credit card – into another account. This could be a digital wallet, a business platform, or a trading account.

It’s not a purchase, and it’s not a payout. Account funding transactions simply transfer funds. You can think of it as topping up your phone, adding money to an e-wallet, or depositing into a trading account – but using your card.

These account funding transfers are supported by all major card schemes and are widely used by payment gateways and payment service providers, especially in industries where fast and secure money movement is essential.

How AFTs Work Behind the Scenes

Here’s what happens during account funding transactions:

1. A customer enters their card details on your site or app.
2. The payment gateway securely handles the data.
3. The transaction is sent to the card network and then to the customer’s bank.
4. Once approved, the funds are moved from the cardholder’s account to the target account – typically a wallet or merchant account.

In most cases, AFTs are processed within seconds. For businesses in fast-paced sectors like crypto, forex, and gambling, that speed makes account funding transactions highly attractive.

Why Use AFTs Over Purchase Transactions?

Many businesses have historically used standard purchase transactions to accept funds from cards – especially in crypto and forex. However, there’s a big difference between purchases and account funding transactions.

• Purchases are for goods or services.
• Account funding transactions are for moving money.

Using the correct transaction type is now more than a best practice – it’s a compliance requirement. Account funding transactions are safer, clearer, and reduce the risk of disputes and chargebacks. They also help you maintain strong relationships with banks and regulators. If you’re exploring other ways to streamline payments, check out our guide on payment orchestration.

Visa and Mastercard AFT Mandates: What’s Changed in 2025

As of January 2025, Visa now requires all card-based crypto and forex transactions to be processed as account funding transactions. That means standard purchase transactions are no longer permitted in these sectors.

Mastercard will follow with the same rule in August 2025.

This is a significant industry shift. These changes are designed to improve transparency and reduce fraud in higher-risk payment flows by using account funding transactions as the industry standard.

What This Means for You

If your business accepts card payments in crypto or forex, and you haven’t yet made the switch to AFTs, then it’s time to act. You’ll need to:

• Confirm that your payment service provider supports AFT payments.
• Ensure your payment gateway collects and sends the required additional information (such as recipient details).
• Test your setup and workflows to ensure smooth processing and compliance.

Your Merchant Category Code also impacts how card schemes view your transactions and risk level. Also, adopting account funding transactions early doesn’t just help you stay compliant – it can also improve approval rates and give your users a smoother payment experience.

Who Needs to Pay Attention?

Account funding transactions are relevant across multiple industries, but they’re especially important for:

• Crypto exchanges and wallets
• Forex platforms
• Online gambling and betting sites
• Digital wallet services
• High-risk fintech platforms

Even so, if you’re not in one of these industries, AFTs can be a smart solution if your business involves funding accounts, top-ups, or customer balances.

Real-World Examples of AFTs in Action

Crypto Platforms

A user wants to buy Bitcoin. They go to their crypto wallet, enter their card details, and make a deposit. An account funding transaction moves the funds from their card into the wallet – quickly and securely.

Forex Trading

A trader spots a market opportunity. To act fast, they use a card to top up their account. Account funding transactions allow them to fund their balance instantly, so they can enter the market without delay.

Gambling Sites

A player wants to enter a poker tournament. Using an account funding transaction, they fund their gaming account in seconds – no slowdowns, no friction, just a smooth experience.

AFTs vs Other Transaction Types

Let’s compare account funding transactions to some other common transaction types:

Ultimately, using the right transaction type is critical. It helps you meet compliance rules, avoid chargebacks, and improve trust with providers.

How to Get Started with AFTs

Here’s what you’ll need to implement account funding transactions in your business:

1. A payment service provider that supports AFT processing and understands your sector.
2. A payment gateway that can handle the secure routing of account funding transactions.
3. An acquiring solution or wallet system for receiving the funds.
4. Regulatory readiness – including support for Strong Customer Authentication (SCA) and extra data fields required under the Visa and Mastercard rules.

You’ll also need a reliable solution for managing incoming payments. Whether it’s a dedicated merchant account or an integrated wallet, your provider should guide you through setup and ensure everything is compliant ahead of the Mastercard deadline in August 2025.

Risks and How to Manage Them

Like all payment types, account funding transactions come with risks. Here’s how to manage them:

1. Fraud

Since account funding transactions involve moving money, they are an attractive target for fraud. Use strong verification, tokenisation, and fraud scoring tools.

2. Disputes & Chargebacks

While chargebacks are less frequent for account funding transactions, disputes still occur. Reduce the risk with clear terms, secure verification, and transparent customer communication. Dive deeper: Chargebacks: What They Are & How to Prevent Chargeback Fraud.

3. Compliance

Visa’s AFT rules are already active. Mastercard’s rules take effect shortly. Non-compliance with account funding transaction regulations could lead to failed transactions or penalties.

How CardCorp Can Help

At CardCorp, as an experienced Independent Sales Organization (ISO), we specialise in supporting businesses in complex, high-risk, and fast-growth sectors. We help you take full advantage of account funding transactions while staying compliant and efficient.

A growing number of VASPs rely on CardCorp’s expertise to source and open MIDs for fiat card payment acceptance. This is especially valuable as more crypto platforms are now required to use account funding transactions in line with new card scheme rules.

Our partner network of more than a dozen crypto-friendly EU acquirers gives you a free look at high-risk merchant account opportunities you may not otherwise be aware of – with no commitment. Whether you’re launching, scaling, or expanding into new markets, we help you find the right acquirer for your needs.

With us, you get:

• AFT-ready processing for crypto, forex, and gambling transactions
• High-risk merchant funding solutions
• Full compliance with Visa’s and Mastercard’s account funding transaction mandates
• Built-in fraud prevention and secure data handling
• Support from real experts who understand your space

In addition to merchant accounts, our gateway infrastructure is built to connect any system to every necessary payment provider. We ensure every connection you need is available, reliable, and optimised – helping you access broader coverage, smoother onboarding, and better payment performance.

Final Thoughts

Account funding transactions are now the standard in digital payments – especially for industries like crypto, forex, and gambling. If you want to stay ahead of card scheme rules, reduce customer friction, and move money more efficiently, account funding transactions are the way forward.

Visa’s rules are already in place. Mastercard’s deadline is fast approaching. If you haven’t made the switch, now is the time.

Need help? Talk to CardCorp today.

We’re a practical way to extend the reach of your in-house payments team – without extra effort or cost. If we can help, let us know. We’re ready when you are.