What is third party transfer ?

Hey, 

I see you wish to learn what is TPT transfer in banking. In the current day and age, even non-bankers need to be adept with bank-related terms. We use bank-related apps and cards every time we step out, be it for groceries, shopping, eating out, money transfers etc. Keep reading details about it in the paragraphs below.

What is third party transfer?

It is a method of transferring funds from your current bank account to another account, within your current or any other bank. It is also known as the credit-push system. Usually, a bank or other financial institution functions as a third party and authorises the transfer of funds between the client and vendor. 

These transfers are documented and often completed quickly and easily. I know numerous businesses and individual households who use this feature. The funds are transferred to the end source yet the ‘transactions can be originated only to remit funds to a beneficiary. This means that in case the transaction is cancelled or interrupted due to a technical glitch, the money will be refunded to the beneficiary. This should clarify what is third party fund transfer.

Things have changed from long queues, frequent bank visits, and the hassle of paperwork to the latest technology. I believe everyone needs to know ‘what is TPT transfer’. Only when people will know the features of all banking mechanisms. Then they will make the best choice regarding fund transfer. 

I hope my explanation helps you understand what is tpt in banking. 

Common Scenarios of Third-Party Transfer:

1. Banking and Finance:
   • In banking, a third-party transfer usually refers to transferring funds from your account to someone else's account through a bank or financial institution. For example, using a payment service like PayPal to send money to a friend.
2. Real Estate:
   • In real estate, a third-party transfer might involve a title company that facilitates the transfer of property ownership from the seller to the buyer.
3. Logistics and Shipping:
   • In logistics, third-party logistics (3PL) providers handle the shipping and storage of goods for companies that do not manage these operations in-house.
4. Technology:
   • In IT, third-party transfers can include transferring data or services between different software platforms or clouds, often facilitated by a third-party service provider.

Benefits of Third-Party Transfer:

• Efficiency: It often speeds up processes by leveraging the expertise and resources of the third party.
• Security: Third parties can provide additional layers of security, especially in financial transactions.
• Convenience: Reduces the complexity for the first and second parties by outsourcing part of the process.

Potential Risks:

• Dependency: Relying on a third party can create a dependency that might affect your operations if the third party fails.
• Costs: There are often fees associated with third-party services.
• Data Privacy: Sharing information with third parties can raise concerns about data privacy and security.

The TPFT full form is  "third-party transfer". TPT in bank statement refers to a financial transaction in which funds are transferred from one person or entity to another. While neither the sender nor the recipient of the funds is the account holder involved in the transaction.

It involves a third party who acts as an intermediary to smoother the transfer of funds between two parties.

Now that you know what is TPT meaning in banking, let me share a few more information points about it below:

The individuals or businesses use the third-party intermediaries services for payment gateways, payment service providers, or digital wallets, to transfer funds to another party.

 To Gift money or make a donation to another person or organization, you can use a third-party transfer.

For stock trading or investments, third-party transfers involve movement of funds between the account of an investor, a brokerage firm, and a third-party bank account for settlement purposes.

Borrowers can also use third-party transfers to make loan repayments. You can authorize the bank to debit your account and transfer funds to a lender's account for loan installment payments.

The third-party transfers have certain regulatory and legal implications in terms of compliance with anti-money laundering (AML) and know your customer (KYC) regulations.

This is all about TPT meaning in banking.

Read more

Once you know the tpt full form in banking, you can easily get an idea about what it means. It stands for Third Party Funds Transfer. It is a free and real-time transaction. My father recently did a TPT so let me share the tpt meaning and process here. Since my father did the transaction through his HDFC account, I will cite it as an example and clarify its meaning based on it.

Third-Party Funds Transfer is a method by which you can transfer funds from your HDFC bank account to any other HDFC bank account having a different customer ID easily. The TPT transfer mode is very simple but before the transfer, you have to add a beneficiary. Here is how you do it-

• Login to your NetBanking portal or click on

• NetBanking HDFC 

• Go to Funds Transfer

• Click on Add a beneficiary transaction from the request section

• Your request will be processed

Also note that you can send only Rs 50,000 during the first 24 hours for the newly added beneficiary.

Do note that IMPS or Immediate Payment Service is nothing but a part of TPT only. The transactions covered under Third Party Transfers for TPT are-

• NEFT - National Electronic Fund Transfer

• RTGS - Real Time Gross Settlement

• IMPS - Immediate Payment Service

All three of them help to transfer money without any delay. So if you want to know TPT vs IMPS, just know that IMPS is nothing but a section under TPT that helps to transfer funds within a short time. Previously people used to stand in long queues especially to transfer money huge sum of money but now everything can be done instantly online.

In short, to answer what is third party transfer in HDFC, I would say it is a free and real time transaction of money from one account to another.

If you have any kind of doubt about it, feel free to contact the bank officials and ask about it. Most people have become smart now and use TPT to transfer money hence it is important that you know about it in detail. 

This is the TPT full form in banking and its meaning.