Payments
Pay by bank (account-to-account payment)
Updated
Pay by bank, or an account-to-account payment, moves money straight from the shopper's bank account to the merchant without a card, approved in their banking app.
Instead of entering card details, the shopper picks their bank, approves the payment in the bank's app or website, and the money is sent from their account. Because there is no card, there is no card network, no interchange and no card chargeback process.
Several forms exist. Bank redirects such as iDEAL send the shopper to their bank to confirm. Real-time schemes such as Pix settle instantly. Bank debits such as SEPA Direct Debit pull the money later under a mandate the shopper signed.
The trade-offs differ from cards. Refunds are sent as new bank transfers, and protection for shoppers comes from the scheme's own rules, for example SEPA Direct Debit's right to a refund within eight weeks.
Frequently asked questions
- Is pay by bank safer than cards?
- The shopper approves each payment in their own banking app, so there is no card number to steal. Protection rules depend on the scheme.
- Can pay by bank payments be charged back?
- Not through card chargebacks. Each scheme has its own rules; SEPA Direct Debit, for example, lets customers claim a refund within eight weeks.
Sources
- Bank redirects — Stripe
- Bank debits — Stripe
- SEPA Direct Debit payments — Stripe