Understanding the Three Legs of a Transaction (NE, FT, and TSQ)

Every transaction processed through the switching platform goes through three important stages — Name Enquiry (NE), Funds Transfer (FT), and Transaction Status Query (TSQ).

These three “legs” ensure that funds are sent to the right account, processed accurately, and tracked reliably.

1. Name Enquiry (NE) 

This is the first leg of the transaction.

At this stage, the system validates the beneficiary account details before any money is sent.

• It ensures the account number matches the account name provided.

• This step helps prevent wrong transfers and ensures accuracy before debiting the sender’s account.

Example:
When you enter an account number, and the correct name appears — that’s the Name Enquiry process working in the background.

2. Funds Transfer (FT) 

Once the account is validated, the next leg is the Funds Transfer (FT).

This is where the actual transaction happens —

• The sender’s account is debited, and

• The beneficiary’s account is credited.

The switch ensures both actions are completed securely and in real-time.
If any interruption (such as network delay) occurs here, the transaction may go into a pending state until the systems confirm completion.

3. Transaction Status Query (TSQ)

The last leg is the Transaction Status Query (TSQ), which confirms the final outcome of the transaction. Whether it was successful, failed, or still pending.

• It ensures both institutions (the sender and beneficiary) have the same transaction status.

• It also provides an audit trail that can be used for reconciliation or dispute resolution.

In simpler terms, TSQ is how the system “double-checks” that everyone agrees on what happened.

Why These Three Legs Matter

Each of these legs plays a key role in ensuring smooth and accurate transfers.
Together, they:

• Protect against errors and wrong credits,

• Ensure transparency between financial institutions.

• Provide reliable data for resolving transaction disputes quickly.