What does Pay by Bank mean?
Pay by Bank is an Open Banking payment method that allows customers to transfer funds directly from their bank account — without entering card details. The payment is authorised within the customer’s own online or mobile banking environment.
Is pay-by-bank a good fit for contact centres wanting to cut card data from calls?
Pay by Bank lets customers pay by authorising a direct bank-to-bank transfer instead of reading out card numbers — no card, account number, or sort code needs to be shared with the agent.
For contact centres, this removes card data from the call entirely, which is a common route for organisations that want to simplify PCI compliance rather than just reduce it.
How does Pay by Bank work?
When a customer selects Pay by Bank at checkout:
- They are redirected to their online or mobile banking.
- The bank displays the payment details for approval.
- The customer confirms using secure login or biometric authentication.
- Funds are transferred directly to the merchant.
Is Pay by Bank instant?
In the UK, Pay by Bank typically uses Faster Payments infrastructure, enabling transfers within seconds. Exact timing may vary slightly depending on the customer’s bank.
Does Pay by Bank require a card?
No. Pay by Bank transfers funds directly from the customer’s bank account and does not require debit or credit card details.
Do I need a Pay by Bank app?
No. Payments are authorised within the customer’s existing online or mobile banking app. A separate application is not required.
Is Pay by Bank the same as Open Banking?
No. Open Banking is the regulatory and technical framework that enables secure bank data sharing and payment initiation. Pay by Bank is a payment method built on top of that framework.
Is Pay by Bank safe?
Yes. Transactions are authorised within the customer’s own banking environment using Strong Customer Authentication (SCA). Because no card details are shared with the merchant, the risk of card-not-present fraud is significantly reduced.
What is Pay by Bank in the UK?
In the UK, Pay by Bank operates under Open Banking regulations and must comply with Strong Customer Authentication requirements under the Payment Services Regulations 2017.
Is Pay by Bank available outside the UK?
Pay by Bank is widely adopted in the UK. Availability elsewhere depends on local Open Banking or PSD2 frameworks and the level of participation from banks in each country.
What is the difference between Pay by Bank and Direct Debit?
Pay by Bank is a real-time, customer-authorised payment completed at checkout. Direct Debit is a recurring payment method where merchants collect funds automatically after prior authorisation.
What is the difference between Pay by Bank and Pay by Card?
Pay by Bank transfers funds directly between bank accounts via Open Banking APIs. Card payments rely on networks such as Visa or Mastercard and require card details for authorisation.
Is Pay by Bank the same as BACS?
No. BACS is a bulk payment system used for payroll or recurring transfers that can take up to three working days to clear. Pay by Bank processes payments in real time through online banking authorisation.
Which banks support Pay by Bank?
In the UK, most major banks support Pay by Bank through Open Banking connections, including Barclays, HSBC, Lloyds, NatWest, Nationwide, Santander, and Monzo. Availability depends on both the customer’s bank and the merchant’s integration provider.
