Pay by Bank
ServicesDefinition
Pay by Bank is the consumer-facing name for payment initiation: the customer pays directly from their bank account at checkout instead of using a card. They select their bank, authenticate with the bank (e.g. via app or redirect), and approve the payment; funds move account-to-account. Benefits typically include lower fees than cards, instant or same-day settlement, and no chargebacks. Powered by PIS and open banking APIs.
Related Terms
PIS
Payment Initiation ServicesPayment Initiation Services are services that allow a third-party provider to initiate payments from...
PISP
Payment Initiation Services ProviderA Payment Initiation Services Provider provides an online service to initiate a payment order at the...
A2A
Account-to-Account PaymentsAccount-to-Account (A2A) payments are transfers made directly from one bank account to another witho...
Frequently Asked Questions
What is Pay by Bank?
Pay by Bank is the consumer-facing name for payment initiation: the customer pays directly from their bank account at checkout instead of using a card. They select their bank, authenticate with the bank (e.g. via app or redirect), and approve the payment; funds move account-to-account. Benefits typically include lower fees than cards, instant or same-day settlement, and no chargebacks. Powered by PIS and open banking APIs.
What does Pay by Bank stand for in Open Banking?
Pay by Bank is a key term in the Open Banking ecosystem. Pay by Bank is the consumer-facing name for payment initiation: the customer pays directly from their bank account at checkout instead of using a card. They select their bank, authenticate with the bank (e.g. via app or redirect), and approve the payment; funds move account-to-account. Benefits typically include lower fees than cards, instant or same-day settlement, and no chargebacks. Powered by PIS and open banking APIs.
More Services Terms
PIS
Payment Initiation ServicesPayment Initiation Services are services that allow a third-party provider to initiate payments from...
AIS
Account Information ServicesAccount Information Services allow third-party providers to access account data (such as balances an...
Sweeping
Sweeping is the automated movement of a customer's funds between two accounts in their name, such as...
VRP
Variable Recurring PaymentsVariable Recurring Payments let customers safely connect authorised payments providers to their bank...
Instant Payments
Instant Payments / Real-Time PaymentsInstant Payments are electronic payments that are processed, cleared, and settled within seconds, 24...
CoF
Confirmation of FundsConfirmation of Funds is a service that allows a CBPII to request confirmation from an ASPSP that su...
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