Which statement defines a pull payment?

Which statement defines a pull payment?

• A. The customer instructs their bank to send money
• B. The merchant instructs their bank to pull funds from the customer
• C. The card network processes the transfer
• D. The issuer issues a card

Answer: (B)

A pull payment is when the merchant initiates the transfer by instructing the customer’s bank to pull funds from the customer’s account. The customer has typically authorized this arrangement upfront, so on each scheduled payment the bank moves the money to the merchant. This is common for subscriptions or recurring charges, where the merchant regularly pulls the agreed amount. It differs from a scenario where the customer themselves instructs their bank to send money (a push), and it’s not about who processes the transfer in the network or who issues the card.

A pull payment is when the merchant initiates the transfer by instructing the customer’s bank to pull funds from the customer’s account. The customer has typically authorized this arrangement upfront, so on each scheduled payment the bank moves the money to the merchant. This is common for subscriptions or recurring charges, where the merchant regularly pulls the agreed amount. It differs from a scenario where the customer themselves instructs their bank to send money (a push), and it’s not about who processes the transfer in the network or who issues the card.