Pay by Bank (Open Banking)

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Beta Feature

Pay by Bank is currently in beta and not suitable for production environments.

Pay by Bank is a payment method available in Europe that lets your shopper transfer funds from their bank account directly to your merchant account. BlueSnap leverages open banking API standards and Payment Service Directive 2 (PSD2) regulations so you can initiate payments with Pay by Bank.

This payment method is facilitated by mobile banking applications and online banking platforms. When your shopper chooses Pay by Bank at checkout, they are redirected to their online banking portal to sign in and authorize the transfer.

Benefits

Pay by Bank provides the following benefits:s

  • Secure payments β€” Shoppers approve the funds transfer from their bank's secure online portal with their usual online banking credentials.
  • Reduced risk β€” You and your shoppers do not need to share sensitive information, such as card data.
  • No Chargebacks β€” Shoppers cannot request a chargeback for payments made with Pay by Bank.

Enable Pay by Bank

Pay by Bank is supported by the Payment API and BlueSnap Checkout. Please reach out to BlueSnap Merchant Support to enable Pay by Bank.

Pay by Bank Transaction Processing

During a Pay by Bank transaction, your shopper is redirected to their online banking portal to complete the funds transfer. The following steps describe how a Pay by Bank transaction is processed:

  1. On the checkout page, your shopper selects Pay by Bank as the payment option.
  2. Your shopper must provide their IBAN. If the IBAN supports Pay by Bank, then your shopper is redirected to their bank's online portal.
  3. Your shopper authenticates to the portal with their usual online banking credentials and approves or cancels the funds transfer.

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    Note

    Your shopper has one hour to complete the funds transfer. After one hour, BlueSnap cancels the transfer automatically.

  4. Depending on whether the funds transfer was approved or canceled, your shopper is redirected to a web page that displays the following information:
    • Approved payments β€” order summary and transaction details.
    • Canceled payments β€” confirmation that no funds will be transferred from their account.
  5. Funds are transferred from your shopper's bank account to BlueSnap, a process that can take up to 24 hours. While the funds are being transferred, the payment displays in BlueSnap as pending.
  6. After the transfer completes, the payment is in approved status.

Refunds

Pay by Bank supports both partial and full refunds. All refunds are processed as SEPA Credit Transfers.

Refunds are processed when the order status is approved. If you request a refund while the invoice is pending, you receive an error message informing you that the transaction is not yet settled.

Supported Shopper Countries

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Important

BlueSnap processes Pay by Bank funds transfers in euros (EUR) only. If your shopper's bank account uses a different currency, then their bank must convert the funds from EUR to the account currency. Your shopper is responsible for any currency exchange fees charged by the bank.

Pay by Bank supports EUR payments in the countries listed in the following table:

CountryCountry Code
AustriaAT
AndorraAD
BelgiumBE
BulgariaBG
CroatiaHR
CyrpusCY
Czech RepublicCZ
DenmarkDK
EstoniaEE
FinlandFI
FranceFR
GermanyDE
GibraltarGI
GreeceGR
HungaryHU
IcelandIS
IrelandIE
ItalyIT
LatviaLV
LiechtensteinLI
LithuaniaLT
LuxembourgLU
MaltaMT
MonacoMC
NetherlandsNL
NorwayNO
PolandPL
PortugalPT
RomaniaRO
SlovakiaSK
SloveniaSI
SpainSI
SwedenSE
SwitzerlandCH
Vatican CityVA