What is meant by Confirmation of Funds (COF)?

Confirmation of funds is a simple 'yes / no' answer that allows a Card Based Payment Instrument Issuer (<a href="/glossarycollection/card-based-payment-instrument-issuer" style="color:#48277C;" target="_blank" title="Card Based Payment Instrument Issuer"><u>CBPII </u></a>) or Payment Initiation Services Provider (<a href="/glossarycollection/payment-initiation-services-provider" style="color:#48277C;" target="_blank" title="Payment Initiation Services Provider"><u>PISP</u></a>) to determine if there are sufficient funds in the account to cover a payment initiation request.