Purchase Direct has a reputation for finding innovative ways to reduce the cost of doing business and, after researching the opportunities the new open banking regulations meant for processing payments, we knew we could find a solution to help businesses save thousands on debit and credit card payments.
Over the past year we have been comprehensively reviewing the options available to provide our motor trade customers with Pay By Link technology, enabling them to send payment links via email to their customers using the Open Banking platform and reducing the cost of a £20,000 debit card transaction by over £40. Many of our customers are already benefiting from this service, with savings on their credit card fees of up to 50%.
Open Banking is the revolutionary new way for consumers to pay for products and services, utilising the Faster Payment Service alongside ‘Pay By Link’ technology. Open banking payments are a lower cost way to receive faster payments from your customers by secure bank transfer directly from their account, typically costing a fraction of a debit or credit card transaction.
In recent years, credit and debit card payments have become the less preferred payment method for many businesses, due to the unfair surcharges from Visa and Mastercard. This prompted the use of direct payments but manual bank transfers run risks, are problematic to administer and can take two or more days to clear. Open Banking offers more security than taking payment over the phone, automatically populating the payment request with the destination bank account along with the transaction amount to be paid, completely removing the risk of misdirected payments.
If you are interested in reducing your card transaction costs or would like more information about any of Purchase Direct’s procurement services, please send an email to openbanking@purchase-direct.co.uk.