Which scenario is a pull payment?

Which scenario is a pull payment?

• A. The customer uses a digital wallet to pay
• B. The customer instructs the bank to send money
• C. The merchant pulls funds from the customer
• D. The card network processes the charge

Answer: (C)

Pull payments occur when the merchant initiates the transaction by pulling funds from the customer’s payment method. In this setup, the merchant has authorization to collect charges, often on a recurring basis, using stored payment credentials. The scenario where the merchant pulls funds from the customer fits this pattern exactly: the merchant requests payment from the customer’s account or card, and the funds are transferred to the merchant. In contrast, using a digital wallet is typically initiated by the customer or the wallet provider, not a merchant-driven pull; a customer telling their bank to send money is a push payment initiated by the payer; and the card network processing the charge describes the network’s role in moving funds, not who starts the collection.

Pull payments occur when the merchant initiates the transaction by pulling funds from the customer’s payment method. In this setup, the merchant has authorization to collect charges, often on a recurring basis, using stored payment credentials. The scenario where the merchant pulls funds from the customer fits this pattern exactly: the merchant requests payment from the customer’s account or card, and the funds are transferred to the merchant.

In contrast, using a digital wallet is typically initiated by the customer or the wallet provider, not a merchant-driven pull; a customer telling their bank to send money is a push payment initiated by the payer; and the card network processing the charge describes the network’s role in moving funds, not who starts the collection.