# Prepaid Cards

<mark style="color:$success;">ACH debit = pull = initiated by receiver</mark>\ <mark style="color:$success;">ACH credit = push = initiated by sender</mark>

## STABLECOIN PREPAID DEBIT CARDS

Push, prefunded, peer-to-peer transfer. Technically a credit because card wallet transfers.&#x20;

<mark style="color:red;">WHY STABLECOINS FOR PREPAID DEBIT CARD SETTLEMENT?</mark>\
Instant zero-fee global 24/7/365 payments

* Prefunded = no credit risk
* Atomic transfers = no float
* Blockchain redundancy = always online
* Direct wallet-to-wallet = no middlemen

**PUSH FLOW**

Credit, Push, Transfer initiated by cardholder

<mark style="color:purple;">COUNTERPARTIES</mark>

Cardholder\
Prepaid debit card wallet\
Blockchain\
Stablecoin\
Merchant wallet\
Merchant

<mark style="color:purple;">FLOW</mark>

Originator → ODFI → Blockchain → RDFI → Receiver\
Cardholder → Card Wallet → Blockchain → Merchant Wallet → Merchant

<mark style="color:purple;">PREPAID STABLECOIN CREDIT / TRANSFER / PUSH FLOW</mark>

1. Cardholder requests payment
2. Card wallet submits stablecoin transfer
3. Blockchain debits card wallet
4. Blockchain credits merchant wallet
5. Merchant wallet confirms receipt to merchant
6. Merchant provides receipt to cardholder

<figure><img src="/files/7JdkVPncvZhbye2rk8Xu" alt=""><figcaption></figcaption></figure>

ROLES

* Sender
* Sender wallet
* Blockchain
* Recipient wallet
* Recipient

FLOW

1. Cardholder requests payment
2. Card wallet broadcasts transfer
3. Blockchain debits card wallet
4. Blockchain credits merchant wallet
5. Merchant wallet confirms
6. Merchant issues receipt to Cardholder

**PULL FLOW**

Cardholder → Merchant → Merchant Wallet → Blockchain → Card Wallet → Cardholder

<mark style="color:purple;">PREPAID STABLECOIN DEBIT TRANSFER / PULL FLOW</mark>

1. Cardholder authorizes merchant to pull funds
2. Merchant sends debit request
3. Merchant wallet submits blockchain debit request
4. Blockchain verifies card wallet balance
5. Blockchain debits card wallet
6. Blockchain credits merchant wallet
7. Merchant wallet confirms receipt to merchant

<figure><img src="/files/o7hZNQrjnSeDxUvw9hNR" alt=""><figcaption></figcaption></figure>

***

### Stablecoin Payment Flows

Digital currency transfers using stablecoins pegged to fiat currencies. Enables fast, low-cost transactions with blockchain security. Settlements occur in real-time without intermediaries.

<mark style="color:purple;">COUNTERPARTIES</mark>

Sender\
Recipient\
Stablecoin issuer\
Blockchain network \
Wallet providers

<mark style="color:purple;">Authorization</mark>

1. Sender initiates a transfer via their wallet.
2. Transaction is broadcast to the blockchain network.
3. Network verifies sender’s balance and transaction validity.
4. Transaction is approved and added to the blockchain.

<mark style="color:purple;">Processing</mark>

1. Transaction is processed on the blockchain.
2. Smart contracts execute any required conditions.
3. Network nodes confirm the transaction.

<mark style="color:purple;">Settlement</mark>

1. Stablecoin is credited to the recipient’s wallet.
2. Transaction is permanently recorded on the blockchain.

<mark style="color:purple;">MINTING & REDEEMING</mark>

```
MINT
1. Authenticate
2. Deposit USD
3. Convert USD to Stablecoin
4. Transfer Stablecoin to Customer

REDEEM
1. Authenticate
2. Create Deposit Address
3. Send Stablecoin to XFT
4. XFT Transfers USD to Bank Account
```

### Visa Direct&#x20;

<mark style="color:purple;">VISA DIRECT FOR WALLET FLOW</mark>

1. The sender initiates a payment using a visa direct client.
2. The Visa Direct Client processes the payment through the Visa Direct Gateway.
3. The Visa Direct Gateway connects to the Visa Payments Limited (VPL) network.
4. A network of wallet aggregators and operators on the VPL is utilized to facilitate the transaction.
5. The payment is transferred to the recipient's financial institution.

<mark style="color:purple;">VISA DIRECT USER FLOW</mark>

1. Sender initiates payment through a digital channel
2. Create and submit OCT transaction
3. Transaction is routed to recipient institution
4. Receiving institution credits account and notifies recipient
5. Recipient can access funds at POS or ATM

### Automated Clearing House

<figure><img src="/files/1x4dWCjJt0AEpR1hahwX" alt=""><figcaption></figcaption></figure>

<mark style="color:red;">ACH DATA FLOW</mark>

1. Originator initiates a debit or credit payment order to the ODFI
2. ODFI transmits the payment information to the ACH operator
3. ACH operator receives data from the ODFI and sorts the entries by routing number
4. ACH operator transmits the entries to the RDFI
5. RDFI receives, processes, and posts the ACH data to the receiver account on settlement day

<mark style="color:purple;">ACH CREDIT TRANSFER</mark>

1. Alice sends a request to Bank A “Pay Bank B $5 for the benefit of Bob”
2. Bank A verifies Alice’s identity and adequacy of Alice’s funds
3. Bank A notifies Bank B of the payment
4. Bank B verifies Bob has an account
5. Bank B sends confirmation to Bank A
6. Both banks send confirmation to their respective customers.

<figure><img src="/files/afO1JZsFVx0jNfeH2dtB" alt=""><figcaption></figcaption></figure>

<mark style="color:purple;">USER FLOW</mark>

1. Alice sends a request to Bank A “Pay Bank B $5 for the benefit of Bob”
2. Bank A verifies Alice’s identity and adequacy of Alice’s funds
3. Bank A notifies Bank B of the payment
4. Bank B verifies Bob has an account
5. Bank B sends confirmation to Bank A
6. Both banks send confirmation to their respective customers.

<mark style="color:purple;">ACH TRANSFER</mark>

1. The merchant provides the amount due.
2. The customer provides authorization for the merchant to initiate payment.
3. The ODFI debits the customer's account and sends the ACH files to the ACH operator.
4. The ACH operator routes the ACH files to the receiving bank (RDFI).
5. The RDFI processes the payment.
6. The funds clear and are deposited into the merchant's account.

***

RESOURCES

Prepaid Pull

```
sequenceDiagram
    participant Cardholder
    participant CardWallet
    participant Network  as Blockchain
    participant MerchantWallet
    participant Merchant

    Merchant -->>CardWallet: Payment request
    Cardholder -->>MerchantWallet: Authorize pull
    MerchantWallet ->>Network: Submit transfer tx
    Network->>CardWallet: Debit stablecoin
    Network->>MerchantWallet: Credit stablecoin
    Merchant-->>Cardholder: Receipt
```

<figure><img src="/files/B4RvqtrBJMv9JwVKphKS" alt=""><figcaption></figcaption></figure>

Prepaid Push Mermaid

```mermaid
sequenceDiagram
    participant Cardholder
    participant CardWallet
    participant Network  as Blockchain
    participant MerchantWallet
    participant Merchant
    Cardholder->>CardWallet: Payment request
    CardWallet->>Network: Submit transfer tx
    Network-->>CardWallet: Debit stablecoin
    Network-->>MerchantWallet: Credit stablecoin
    MerchantWallet-->>Merchant: Funds confirmed
    Merchant-->>Cardholder: Receipt
```

<figure><img src="/files/7JdkVPncvZhbye2rk8Xu" alt=""><figcaption></figcaption></figure>

[Automated Clearing House](https://publishedguides.ncua.gov/examiner/Content/ExaminersGuide/ElectronicPaymentSystems/EPSTypes/ACH/ACH_Overview.htm)

```
TRADITIONAL MONEY MARKET FUND
1 Unit A initiates MMF redemption
2 Unit A approves MMF redemption
3 MMF redemption settlement (T+0 or T+1)
4 Unit A confirms MMF proceeds landed in bank
5 Unit A initiates MMF payment to Unit B
6 Unit A approves payment to Unit B
7 Unit B receives payment, initiates MMF purchase and associated payment
8 Unit B approves MMF purchase and associated payment
9 Funds arrive at MMF, begin earning interest (T+0 to T+1)

TOKENIZED MONEY MARKET FUND
1 Unit A initiates transfer of MMF tokens to Unit B
2 Unit A approves transfer of MMF tokens to Unit B
3 Funds arrive in Unit B's wallet and start earning yield instantly, with no yield lost during transaction
```

[IDN Flows](/idn/technical/payments/idn-flows.md)

Plant UML Pull

<div><figure><img src="/files/2rJMnxxa3IAUp00XGXYx" alt=""><figcaption></figcaption></figure> <figure><img src="/files/hQ9UsMu4qig6Guw1hvUG" alt=""><figcaption></figcaption></figure></div>

```
@startuml
participant Cardholder
participant CardWallet
participant Blockchain
participant MerchantWallet
participant Merchant

Merchant --> CardWallet : Payment request
Cardholder --> MerchantWallet : Authorize pull

MerchantWallet -> Blockchain : Submit transfer tx
Blockchain -> CardWallet : Debit stablecoin
Blockchain -> MerchantWallet : Credit stablecoin
Merchant --> Cardholder : Receipt
@enduml
```

pull

<figure><img src="/files/EXfxVcVHJiwKB7TPR7JM" alt=""><figcaption></figcaption></figure>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.xft.finance/idn/use-cases/prepaid-cards.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.