Latest news with #paybybank
Yahoo
13-06-2025
- Business
- Yahoo
Online Shoppers Warned About New Payment Method
Online shoppers have been increasingly provided the option to pay directly from their bank accounts instead of having to put in all of their credit or debit card information. While this might be convenient for some shoppers and offer some perks, it also carries some significant risks. These new "pay by bank" options have some perks for customers, allowing refunds to be processed instantly and allowing the transacrion to proceed without card details being shared. It also has some perks for businesses, allowing them to bypass card transaction fees and receive customer funds immediately. While this might be alluring to consumers and businesses alike, there are some security concerns. While the "pay by bank" options are increasingly common, Which? money editor Jenny Ross issued a pretty major warning for consumers, pointing out that these sort of payments lacks the Section 75 and chargeback protections associated with other payment methods. Section 75 of the Consumer Credit Act can hold credit card companies liable for faulty or unfulfilled purchases. This allows shoppers to potentially file chargebacks with their credit card provider and receive refunds even if the retailer fails to reimburse them. These same protections don't exist for "pay by bank" options. 'Innovations like pay by bank present opportunities for businesses and consumers alike, but they're not without risk, particularly as they lack the rigorous purchase protections you get when paying by card," Ross said via The Independent. 'We're calling on the regulator to act to ensure consumers can use pay by bank with confidence, but in the meantime, we'd urge consumers to think carefully before using it to book events or make substantial purchases – for now, your good old-fashioned credit or debit card may be the best option.' Obviously, this is an important thing for customers to consider before using the "pay by bank" option for their online shopping. Online Shoppers Warned About New Payment Method first appeared on Men's Journal on Jun 13, 2025
The Independent
11-06-2025
- Business
- The Independent
Shoppers warned that popular ‘fast' payment method could leave them unprotected
Consumers are being encouraged to understand their payment protections amid the growing popularity of 'pay by bank' options. The method allows for direct, secure transfers from a bank account without needing card details or recipient information. However, Which? has highlighted a potential 'protection gap' if purchases go wrong. While pay by bank is increasingly used for credit card payments, bill settlements, and retail purchases, Which? warns it lacks the Section 75 and chargeback protections associated with other payment methods. Section 75 of the Consumer Credit Act can hold credit card companies liable for faulty or unfulfilled purchases, potentially allowing shoppers to claim refunds from their provider if the retailer fails to reimburse them. People using a debit card or a credit card for purchases could also potentially get their money back via the voluntary chargeback scheme. Which? said pay by bank is a 'potential game changer' for businesses as they can sidestep card transaction fees and also benefit from receiving customer funds immediately. There is also appeal for consumers too as refunds can be processed instantly, and card details are not shared when making a transaction – eliminating the risk of them being stolen or compromised. People do have general purchase rights under the Consumer Rights Act, meaning that goods must be fit for purpose, as described and of satisfactory quality. But Which? said these protections are not always easy to enforce and in some cases may end up with people needing to go to a small claims court. People may also face difficulties in the event of a business going bust, particularly if there is an issue with a future-dated purchase such as a flight, a festival, or a household big ticket purchase such as a kitchen or a sofa, the consumer group said. Jenny Ross, Which? Money editor, said: 'Innovations like pay by bank present opportunities for businesses and consumers alike, but they're not without risk, particularly as they lack the rigorous purchase protections you get when paying by card. 'We're calling on the regulator to act to ensure consumers can use pay by bank with confidence, but in the meantime, we'd urge consumers to think carefully before using it to book events or make substantial purchases – for now, your good old-fashioned credit or debit card may be the best option.' A spokesperson for banking and finance industry body UK Finance said: 'There are a range of options for making payments online which provides customers with choice as to how they wish to pay. Different payment methods do come with different levels of protection and it's worth being aware of these when shopping online, particularly when making higher value purchases.'
The Sun
11-06-2025
- Business
- The Sun
Shoppers warned about quick online payment option that could end up costing you £1,000s
A WARNING has been issued to shoppers over a quick payment option that can cost £1,000s. Which? is urging caution over use of the "pay by bank" feature which lacks key consumer protection. 1 The payment feature lets shoppers pay for products without the need to enter bank details or use a card. It is used by popular online retailers such as WHSmith, Just Eat, Funky Pigeon and Ryanair. You can also use it to settle credit card balances or pay bills. However, Which? has raised concerns people may be unaware it can leave them unprotected if something goes wrong with a purchase. The option lacks Section 75 and chargeback protections that shoppers get when paying through other methods. Under Section 75 of the Consumer Credit Act, a credit card company can be held jointly liable for a purchase that turns out to be shoddy or does not materialise. This means a shopper can potentially get a refund from the credit card company if they cannot recover their costs from a retailer. Those using a debit card or credit card for purchases can also potentially get their money back via the chargeback scheme. Which? said pay by bank is a "potential game changer" for businesses as they can sidestep card transaction fees and also benefit from receiving customer funds immediately. There is also appeal for shoppers as refunds can be processed instantly. Shopping discounts - How to make savings and find the best bargains While card details are not shared when making a transaction – eliminating the risk of them being stolen or compromised. People do have general purchase rights under the Consumer Rights Act, meaning that goods must be fit for purpose, as described and of satisfactory quality. But Which? said these protections are not always easy to enforce and in some cases may end up with people needing to go to a small claims court. People may also face difficulties in the event of a business going bust. This could particularly be the case if there is an issue with a future-dated purchase such as a flight, a festival, or a household big ticket purchase such as a kitchen or a sofa. Jenny Ross, Which? money editor, said: 'Innovations like pay by bank present opportunities for businesses and consumers alike, but they're not without risk, particularly as they lack the rigorous purchase protections you get when paying by card. 'We're calling on the regulator to act to ensure consumers can use pay by bank with confidence, but in the meantime, we'd urge consumers to think carefully before using it to book events or make substantial purchases – for now, your good old-fashioned credit or debit card may be the best option.' A spokesperson for banking and finance industry body UK Finance said: 'There are a range of options for making payments online which provides customers with choice as to how they wish to pay. "Different payment methods do come with different levels of protection and it's worth being aware of these when shopping online, particularly when making higher value purchases." What is Section 75 protection? Section 75 protection offers you consumer protection on credit card purchases worth between £100 and £30,000. It applies to any products or services you've bought that end up being faulty, broken, or were not delivered at all. It also covers you in the case a retailer you've bought from goes bust. Section 75 applies to goods bought online, over the phone or via mail order. You aren't covered by Section 75 if you bought anything with a debit card, but may be under chargeback. To make a claim under Section 75, you need to contact your credit card provider. It should then send you a claim form which you can fill in and your provider will use to process your application. Your card firm might ask you to provide evidence such as a receipt or a report verifying that the item is faulty. In the scenario where a retailer has not gone bust, you should complain to them first. If you find that your card company has been unhelpful and refused your claim, you can take your case to the Financial Ombudsman Service (FOS).
FF News
02-06-2025
- Business
- FF News
Visa Brings Smarter Pay-by-Bank with Built-In Consumer Protections to the UK Market
Visa, a global leader in digital payments, is today announcing that its new pay-by-bank solution is ready for market in the UK. Built on Visa's decades of payments expertise, Visa A2A gives consumers greater choice, control and protection over how they pay via bank transfers. It is designed to make pay-by-bank transactions — including bill and subscription payments— safer and smarter. Visa A2A introduces an easy and intuitive experience for consumers, allowing them to easily manage their bills and subscriptions through their bank app. For the first time in the UK, it also introduces Visa's best-in-class consumer protections to bank transfer transactions, including clear guidelines for consumers, businesses and banks on rights and responsibilities should things go wrong. This will effectively provide a similar level of protection typically associated with card payments, so consumers can get their money back if there is an error. Visa A2A also benefits businesses, as near real-time settlement through Faster Payment System gives them greater visibility over payments and makes cash flow management simpler. Businesses can take advantage of the digital nature of Visa A2A, including notifications if a consumer changes or cancels payment permissions, and it also provides them with the ability to include more transaction data for reconciliation. Visa A2A is based on an open model that will enable banks and other industry partners to join and extend open banking-enabled payments to businesses. With a commercial model designed to work for all participants in the ecosystem and to boost the UK fintech community, Visa A2A will help to unlock the full potential of open banking in the UK. Research from Innovate Finance indicates that advancing the UK's FinTech ecosystem – a key partner in the development and delivery of Visa A2A – could unlock £328 billion over the next five years1. Safer e-commerce With an operational technology platform ready to process bills and subscriptions, Visa plans to expand Visa A2A, including e-commerce payments in the UK with a phased approach. This expansion means consumers choosing to use pay-by-bank across a variety of use cases, could benefit from similar levels of protection to those currently offered by card payments. Visa A2A for e-commerce will offer a secure, hassle-free way to pay directly through bank accounts. Customers will be able to authorise this payment method once, then simply choose pay-by-bank at checkout for a one-click purchase experience that is fast, seamless and secure. Mandy Lamb, Managing Director, Visa UK and Ireland, said: 'The UK has spearheaded innovation in financial services for many years, and in light of increasing fraud and international competition, we must continue to lead the way. 'We are proud to be working with our partners to deliver a state-of-the-art pay-by-bank experience, coupled with Visa's best-in-class consumer protections. 'Visa A2A is a game-changer – it means for the first time UK consumers and businesses using pay-by-bank will benefit from a similar level of protection typically associated with card payments.' Isabel Pitt, Deputy Director of Payments, Nationwide Building Society, said: 'A2A payments are rapidly gaining traction across UK businesses and consumers, offering a seamless and efficient way to transact. However, for these payments to reach their full potential, the right framework – rules, capabilities, and protections – must be in place. That's why we're excited to collaborate with Visa and our industry partners to bring Visa A2A to the UK. This milestone innovation will enhance payment experiences and deliver greater security and convenience to Nationwide members.' Delphine Emenyonu, Head of Unsecured Lending & Open Banking, TSB, said: 'We welcome the opportunity to collaborate on Visa A2A in the UK alongside Visa and other industry participants. As interest in A2A payments continues to grow among UK consumers and businesses, ensuring the right infrastructure, standards, and protections are in place will be key to supporting their future development. We look forward to seeing how this innovation can benefit TSB's customers.' Matthieu Barral, VP, Global Partnerships, said: 'Visa is changing how money moves with A2A payments, and is proud to be one of the first to bring this solution to merchants in the UK.' 'Together, we are giving merchants the latest option in market innovation, setting a new standard for speed, security, and payment performance.' Ian Burgess, Managing Director, Utilita, said: 'We're excited to continue our long-standing relationship with Visa as we embark on the A2A journey. We are keen to provide choice for our customers and the evolution to A2A only reinforces our continued leadership in the prepayment energy sector. The reassurance that Visa A2A provides in terms of card-like protection to both the merchant and the consumer was a key factor in our decision to partner with Visa on this initiative and we can't wait to adopt this within both our credit and prepay payment journeys.' Zak Lambert, Head of Product for Plaid Europe, said: 'This partnership brings together Visa's trusted rails and Plaid's open banking network to make paybybank as simple and secure as card on file. It's a new standard for how consumers and businesses move money—fast, protected, and ready to scale.' Alexey Gabsatarov, Chief Technology Officer, Kroo, said: 'Kroo Bank welcomes Visa's new A2A solution, an important step forward for both open banking and account-to-account payments. We view it as an inclusive, industry-led model that prioritises consumer protection, confidence and usability. Visa has already demonstrated the benefits of applying its card scheme expertise to A2A payments, and we look forward to deepening our partnership to increase choice and strengthen trust for consumers, businesses and the wider banking community.' Eline Blomme, Chief Product & Strategy Officer, said: 'We are incredibly enthusiastic about the future of A2A payments with Visa and discussing this with our industry peers. The collective expertise in this space is instrumental as we work to bring Variable Recurring Payments (VRPs) to the forefront of the UK market.' 'As a payments agnostic provider, powering recurring payments is at the heart of our business. Partnering with Visa A2A for VRPs represents a pivotal step forward in this area, unlocking unprecedented levels of security, flexibility and transparency for customers and offering a seamless alternative to traditional Direct Debit.' Colin Swain, Head of Product, Corporate Solutions, Bottomline, said: 'As a global leader in business payments, Bottomline is excited to explore new opportunities that help shape the future of how businesses pay and get paid. With a strong track record of simplifying the collection of both single and recurring payments, Visa A2A complements the growing shift toward real-time and instant payment methods for recurring use cases.' Myles Stephenson, CEO & Founder, Modulr, said: 'We're delighted to be part of the launch group of Visa A2A, working closely with Visa and other participants to drive forward the next phase of innovation in A2A payments. This is a significant step forward in implementing a sustainable, industry-leading solution, aligning with Modulr's commitment to provide seamless and secure payment experiences for customers.' Ian Morrin, Head of Payments, Tink, said: 'There is clear momentum behind pay by bank solutions in the UK market, so it's fantastic to see Visa spearheading innovation and industry collaboration with the development of Visa A2A.' 'This is a pivotal moment for fintech companies, like Tink, and banks to work together to provide enhanced account-to-account experiences for consumers and businesses alike.'
Finextra
01-06-2025
- Business
- Finextra
Visa A2A payments land in the UK
Card giant Visa is taking aim at the UK's burgeoning account-to-account market through its new pay-by-bank offering. 0 Visa A2A promises to give Brits greater choice, control and protection over how they pay via bank transfers. The firm says it will let people easily manage their bills and subscriptions through their bank app while effectively providing a similar level of protection typically associated with card payments. For businesses, Visa A2A takes advantage of real-time settlement through Faster Payment System to offer greater visibility over payments and simpler cash flow management. Firms can take advantage of the digital nature of the service to get notifications if a consumer changes or cancels payment permissions, and it also provides them with the ability to include more transaction data for reconciliation. With an operational technology platform ready to process bills and subscriptions, Visa plans to expand Visa A2A to include ecommerce payments in the UK with a phased approach. The firm is also working with an open model that will enable banks and other industry partners to join and extend open banking-enabled payments to businesses. Mandy Lamb, MD, Visa UK and Ireland, says: "Visa A2A is a game-changer - it means for the first time UK consumers and businesses using pay by bank will benefit from a similar level of protection typically associated with card payments." Isabel Pitt, deputy director of payments, Nationwide, adds: "A2A payments are rapidly gaining traction across UK businesses and consumers, offering a seamless and efficient way to transact. However, for these payments to reach their full potential, the right framework - rules, capabilities, and protections - must be in place. That's why we're excited to collaborate with Visa and our industry partners to bring Visa A2A to the UK."
