Open Banking is the revolutionary 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 the cost of a debit or credit card when selling high ticket items such as cars. 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. In fact, this has prompted many dealers to try to move their customers to direct payments, but manual bank transfers run risks and are problematic to administer.
Manual bank transfers can take 2 or more days to clear, as they typically do not utilise the Faster Payment Service mechanism. Funds transferred in this way can show on an account but not be fully cleared. Until funds have been confirmed as fully cleared, they are not guaranteed and run the risk of the payment being returned. Open Banking uses the Faster Payment Service, therefore transactions typically take seconds to process and are guaranteed as soon as they hit the destination account.
1 in 10 people have accidentally misdirected a manual bank payment in the last year, causing timely delays in receiving payments. Open Banking automatically populates the payment request with the destination bank account along with the transaction amount to be paid, completely removing the risk of misdirected payments.
With contactless payments, Pay by Link and Open Banking becoming a lot more popular, we are seeing more and more businesses take on these services, but there are many factors that need to be considered, depending on how the service is to be run.
The Pay by Link and Open Banking market have become saturated in recent years and so it can be difficult to compare providers. Purchase Direct have comprehensively researched the options available to provide our clients with Pay By Link technology, enabling you to send payment links via email to your customers using the Open Banking service. Payments are securely and cost effectively managed for instant transfer, with transparent payment records and lower fraud rates. An easy process for your customer, who simply connects securely to their internet or mobile banking to make a payment. It also offers easier payment reconciliation, as all payments are managed in one location, populated with a chosen reference number and making the matching of transactions clearer.
To find out more about Pay by Link and Open Banking and how this could significantly reduce your card processing costs, contact Purchase Direct on 01707 299100 or email info@purchase-direct.co.uk.