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What would be considered a nested transaction for cross border money transfer?

A cross-border transfer refers to a financial transaction that involves the transfer of funds between accounts in different countries. Nested transactions can occur in the context of cross-border transfers, as they involve multiple steps and may involve multiple parties.

Here is an example of a nested transaction in the context of a cross-border transfer:

  1. Customer A initiates a transfer of funds from their account at Bank A in Country X to their account at Bank B in Country Y.
  2. Bank A verifies that Customer A has sufficient funds in their account to complete the transfer.
  3. If Customer A has sufficient funds, Bank A debits the funds from Customer A’s account and initiates a transfer to Bank B in Country Y.
  4. Bank B in Country Y receives the transfer and credits the funds to Customer A’s account.

In this example, the transfer of funds from Bank A in Country X to Bank B in Country Y is a nested transaction, as it involves multiple steps and is dependent on the outcome of the previous step (verifying that Customer A has sufficient funds).

Nested transactions can also involve multiple parties and involve the transfer of goods or services in addition to funds. For example, a nested transaction could involve a customer purchasing goods from a merchant in a different country, with the payment being made through a third-party payment processor. In this case, the transaction would involve multiple steps, including verifying the customer’s payment information, processing the payment, and transferring the funds to the merchant’s account.

This page was last updated on January 3, 2023.