Pay By Bank, also known as Open Banking Payments, Direct Payments or Electronic Funds Transfer, is a secure online payment method businesses have started adopting, to allow customers to instantly pay from any bank account – often offered as an alternative to card payments.
How does it work?
When your customers are making a payment online, it’s convenient to offer a variety of payment options to complete the order. Paying with a credit or debit card is the most common, but businesses can also add Pay by Bank as an option.
The amount to pay can be open and up to the customer, or it can be set to the total amount due to be paid.
After selecting to pay by bank and clicking to pay the amount, customers are prompted to choose their bank from a list of all major UK and European banks. This is the bank account they will be paying from.
The Customer is taken to their own Bank’s Online Banking or App, which will ask to verify their login details and identity. This is all completely secure, with two-factor authentication, containing information that only the customer will know.
Once logged in, the customer can confirm the payment amount and select which Bank Account to use (if they have multiple accounts like current, savings or joint accounts).
No sort code, account number, card number or expiry details are required.
Once the payment amount is confirmed, funds are paid instantly to your business. An email receipt is issued, and the Customer is taken back to the online checkout screen, advising them that the payment has been successful.
This is all powered by the Open Banking initiative, which has been growing rapidly with more and more organisations starting to offer this payment method.
Our Secure Web Payment Service is very flexible to suit your business requirements. Contact Key IVR today and we can discuss how the addition of Pay By Bank can increase payment conversion and benefit your organisation, call +44 (0) 1302 513 000 or email firstname.lastname@example.org