Pay by Bank payments
Offer your customers in the UK and Europe the option to pay directly from their bank account.
Pay by Bank is a single-use payment method that allows customers to pay directly from their bank account instead of using a card.
Pay by Bank runs on banking infrastructure and takes advantage of open banking APIs. When a customer chooses Pay by Bank, they first select their bank and then approve the payment on their bank’s mobile app or web portal.
Pay by Bank is available by default for payments between 0.50 GBP and 10,000 GBP. If you want to accept Pay by Bank payments over that amount, contact us using the form at Stripe support.
- Customer locations Finland, France, Germany, Ireland, United Kingdom
- Presentment currency EUR, GBP
- Payment confirmation Customer-initiated
- Payment method family Real-time payments
- Recurring payments Private preview
- Payout timing Standard payout timing applies
- Connect support Yes
- Dispute support No
- Manual capture support No
- Refunds / Partial refunds Yes / Yes
Sign up
Pay by Bank for customers in France and Germany is in private preview.
Interested in getting access to Pay by Bank in France and Germany?
Enter your email to request access.
Payment flow
Customer selects Pay by Bank at checkout
Customer chooses bank and gets redirected
Customer enters account credentials
Customer completes authorization process
Customer is notified that payment is complete
Customer returns back to business’s site for payment confirmation
Get started
You don’t have to integrate Pay by Bank and other payment methods individually. If you use our front-end products, Stripe automatically determines the most relevant payment methods to display. Go to the Stripe Dashboard and enable Pay by Bank. To get started with one of our hosted UIs, follow a quickstart:
If you prefer to manually list payment methods, learn how to manually configure Pay by Bank as a payment.
Refunds
You can refund Pay by Bank payments for up to 730 days (2 years) after the original payment. You can refund part of the original payment or the entire amount of the original payment. Refunds are free of charge but the processing fees for the original payment are non-refundable.
Stripe sends the refund back to the same bank account that initiated the payment. We notify you of the final refund status using the refund.updated or refund.failed webhook event. When a refund succeeds, the status of the Refund object transitions to succeeded.
A refund can fail if the customer’s bank can’t process it correctly (for example, the bank account is closed). If a refund fails, the status of the Refund object transitions to failed. We’ll return the amount of the refund to your Stripe balance. You’ll then need to arrange an alternative way of providing your customer with a refund.
Disputes
Pay by Bank payments have a low risk of fraud or unrecognized payments because the customer must authenticate the payment in their banking app. As a result, no dispute process exists that can result in a chargeback and funds being withdrawn from your Stripe account
Handling late bank transfers
Occasionally, a Pay by Bank payment can be authorized, but Stripe doesn’t receive the funds from the customer’s bank within the expected settlement window. When this happens, the payment fails with the error code payment_method_provider_timeout.
In the rare event that the customer’s funds arrive after the payment has already failed, Stripe automatically returns the funds to the customer.
Pay by Bank Recurring Private preview
Pay by Bank Recurring is now available in private preview for users of Stripe Elements and the Payment Intents API. It combines an initial Pay by Bank payment with a Bacs Direct Debit mandate for recurring payments.
Benefits
- Instant first payment : Confirm the initial payment immediately, saving 7 business days compared to Bacs Direct Debit.
- Faster payouts : Receive the initial payout within 3 business days, saving 4 business days.
- Fewer disputes : The initial payment is strongly authenticated and can’t be disputed.
- Instant bank verification : Verify account ownership and the account holder’s name immediately.
Sign in to Stripe to request access to the Pay by Bank Recurring private preview.
Connect
You can use Stripe Connect with Pay by Bank to process payments on behalf of a connected account. Connect users can use Pay by Bank with the following charge types:
Enable Pay by Bank for connected accounts that use the Stripe Dashboard
Connected accounts that use the Stripe Dashboard can enable Pay by Bank in their Payment methods settings in the Dashboard. To check which accounts have enabled Pay by Bank, use the capabilities hash in our accounts webhooks or APIs to see if the pay_by_bank_payments capability is set to active.
Enable Pay by Bank for connected accounts that use the Express Dashboard or a dashboard that isn’t hosted by Stripe
To onboard connected accounts that use the Express Dashboard or a dashboard that isn’t hosted by Stripe, request the pay_by_bank_payments capability using the Capabilities API For more details, follow the instructions to enable payment methods for your connected accounts.