Who initiates or sends funds in a transfer?

• A. Debtor
• B. Originator
• C. Beneficiary
• D. Counterparty

Answer: (B)

When a transfer happens, the key idea is who starts the payment instruction. The party who directs their bank to move funds from their account—providing the instruction to the payment network and the financial institution to initiate the transfer—is the originator. This person or entity is responsible for initiating the transfer and supplying the funds, which is why they are labeled the originator in payment systems. The beneficiary is simply the recipient of the funds, not the one who starts the transfer. While a debtor can describe someone who owes money, the formal term used in transfers for the initiator is originator. The counterparty is any other participant involved in the transaction, not specifically the initiator.