Pay by Bank

Summary

Pay by Bank is an online payment method that lets customers pay directly from their bank account using Open Banking.

Instead of entering debit or credit card details, customers select their bank and approve the payment using their banking app or bank's website. Once approved, they're returned to the checkout and receive payment confirmation in real time.

What is Pay by Bank?

Pay by Bank uses Open Banking to securely connect customers with their bank during checkout.

Customers can pay directly from their bank account without entering card details or sharing their online banking login information with the merchant.

The payment is authorised securely through the customer's own bank using bank-grade authentication.

How Pay by Bank works

When a customer chooses Pay by Bank at checkout, they'll complete the payment through their own bank.

1. Go to the checkout.
2. Select Pay by Bank as the payment method.
3. Choose your bank from the list of available banks.
4. You'll be redirected to your banking app or your bank's website.
5. Authenticate with your bank.
6. Review the payment details.
7. Approve the payment.
8. You'll be returned to the checkout.
9. Your payment confirmation will be displayed in real time.

Once approved, funds are sent directly from the customer's bank account to the merchant's bank account.

What a successful payment looks like

A Pay by Bank payment is successful when:

• Pay by Bank was selected at checkout.
• The customer approved the payment with their bank.
• The customer returned to the checkout.
• Payment confirmation is displayed.
• The transaction appears as completed in your payment records.

Can't see the payment?

If a customer confirms they approved the payment but you can't see the transaction or payment confirmation, log a support ticket so the payment can be investigated.

Benefits of Pay by Bank

Pay by Bank offers a fast, secure payment experience for both merchants and customers.

Benefits for merchants

Pay by Bank can help you:

• Reduce payment processing costs compared with some card payment routes.
• Receive payment confirmation in real time.
• Benefit from faster settlement.
• Reduce exposure to card-related fraud.
• Experience fewer card payment failures.
• Simplify payment reconciliation.
• Offer a smoother checkout experience.

Because Pay by Bank isn't a card payment, card chargebacks don't apply in the same way. Customers can still contact you, their bank, or support if they have a payment or purchase query.

Benefits for customers

Pay by Bank allows customers to:

• Pay directly from their bank account.
• Avoid entering card details.
• Approve payments through their own bank.
• Keep online banking login details private.
• Use secure bank authentication.
• Review the payment before approving it.
• Complete checkout quickly.

Security

Pay by Bank uses secure Open Banking APIs to connect the checkout journey with the customer's bank.

Customers always authenticate directly with their bank. Merchants never receive the customer's:

• Debit or credit card details.
• Online banking login credentials.

Customers should always check the payment details shown by their bank before approving the transaction.

Refunds

If a customer requests a refund, follow your normal refund process.

Depending on your payment setup, refunds may also benefit from faster processing.

If you can't locate a payment, refund or transaction status, log a support ticket with the relevant payment details so it can be investigated.

Recurring or instalment payments

This article doesn't confirm support for recurring payments or instalment payments using Pay by Bank.

If you're interested in these features, log a support ticket. Your request can be shared with the relevant team as product feedback or roadmap interest.

Frequently asked questions

Does the customer need a debit or credit card?

No. Customers pay directly from their bank account.

Does the customer share their banking details with the merchant?

No. Customers approve the payment through their own banking app or bank website. Banking login details aren't shared with the merchant.

Are payments confirmed in real time?

Yes. Once the customer approves the payment, confirmation is displayed in real time.

Can a customer cancel before approving the payment?

Yes. Customers can choose not to approve the payment when they're redirected to their bank.

Are card chargebacks available?

Pay by Bank isn't a card payment, so card chargebacks don't apply in the same way. Customers with payment or purchase issues can still contact the merchant, their bank, or support.

When to log a support ticket

Log a support ticket if:

• Pay by Bank isn't available at checkout when expected.
• A customer says they approved a payment but you can't see confirmation.
• A payment status doesn't look correct.
• A refund can't be located.
• You need help reconciling a Pay by Bank transaction.
• You'd like to provide feedback about recurring payments, instalment payments, or other Pay by Bank features.

Include as much information as possible, including:

• Transaction reference
• Payment date
• Customer reference
• Order number
• Screenshots (where available)

This will help the support team investigate more quickly.