Should Your Business Accept Pay-By-Bank Payments?

In the dynamic world of business, the trend of businesses expanding their customers’ payment options to include bank-based methods like Automated Clearing House (ACH) and Electronic Funds Transfer (EFT), is gaining momentum. By allowing direct payments from bank accounts and bypassing traditional credit card networks this shift promises enhanced security, convenience, and better financial management for consumers. .

So, is it worthwhile for your business to expand and accept bank-based payments? Before you rush ahead and start building in Automated Clearing House (ACH) and Electronic Funds Transfer (EFT) payment options into your customer journey, here are a few things you should be aware of:

What are Pay-by-Bank services?

Pay-by-Bank, enables consumers to transfer funds directly from their bank accounts. This process can take various forms, but for simplicity’s sake, this method bypasses traditional credit card networks, and is increasingly becoming facilitated by open banking systems. It’s a shift from conventional methods like credit or debit cards, with the goal being to streamline transactions.

Consumer Resistance and Potential

Despite the advantages, research shows that nearly 40% of consumers are hesitant to adopt Pay-by-bank payments, even with incentives. While 84% of users are satisfied with A2A payment platforms, a significant portion abstains due to a lack of understanding. A study by AWS highlights the need for educational campaigns to bridge this knowledge gap. Additionally, generational preferences play a role, with millennials leading in A2A adoption, whereas older generations show less interest. Surprisingly, incentives like cash-back offers or discounts are not enough to sway skeptics, suggesting the need for more than just financial incentives to boost adoption. Read: Payments – Nearly 40% of Consumers Say No to Pay-by-Bank Payments Even With Incentives

Benefits to Customers and Merchants

For customers, benefits include lower costs (when merchants are employing surcharging for credit card transactions), enhanced security, convenience, speed, and better financial control. Merchants, on the other hand, can enjoy reduced transaction fees, lower chargeback risks, access to a broader customer base, faster settlement times, and regulatory compliance. These advantages make a compelling case for businesses to consider bank-based payments as an additional payment option to make available to their customers.

Considerations for Implementation

However, the decision to adopt bank-based payments isn’t straightforward. Factors like the user experience, which may not always rival credit card transactions, the availability and accessibility to all customers, and the dependency on regional technology and infrastructure must be considered.

Weighing the Pros and Cons

While bank-based payments offer several advantages, particularly in terms of cost and risk management for merchants, they also present benefits to consumers in terms of security, convenience, and financial management. However, the extent of these benefits varies depending on individual circumstances and regional factors. Therefore, businesses must carefully evaluate whether expanding to accept bank-based payments aligns with their operational needs and customer expectations.


In conclusion, the decision as to whether to incorporate Pay-by-Bank payments into your business model is a multifaceted one. The growing popularity of bank-based methods with their previously mentioned attendant advantages presents a compelling case. However, the mixed response from consumers, and the varied impact on different demographics, calls for a strategic approach. Balancing the tangible advantages for both customers and merchants against the potential challenges in implementation and customer adoption is crucial.

If you are wondering whether you should add Pay-By-Bank as a payment option for your customers and are looking for guidance, start by contacting our team at Datatel (link to: – we can help facilitate the journey.

We’re Here to Help

What our clients are saying about us

“Never any issues with you guys! Things just work.”

Gerry Henstra, CEO, Henstra Business Solutions

“Customer service is a really big deal to us, and I am glad to do business with a company that obviously takes it as seriously as we do.”

Jeff Boatman, Global Client Solutions

“We’re happy with the IVR Payment system and it has been working well for us. Recently we also setup your newest SMS (text) receipts and found it to work great.”

IT Manager

“I want to command you and your team at Datatel on the job just completed for Tele-Response Center. The attention to detail and professionalism with which you approached the project was exemplary and greatly appreciated especially considering the several applications that needed to be implemented on short notice. Thanks again for your assistance getting this project off the ground so smoothly.”

Joe Grossman, Sr. Vice President, 121 Direct Response

“My team and I would like to commend Datatel on creating an IVR application that adds great value to our new Travel product. Your knowledge, input and expertise in IVR scripting, call flow management and overall IVR logistics made the development and implementation stages extremely easy to manage. Thank you for a well executed campaign that was launched on time and on budget.”

Ryan McCullough, Marketing Manager, Aegon Direct

“Great team to work with. I look forward to utilizing some additional capabilities in the future.”

Bob Griffin, VP of Operations, MedA/Rx

“We are very grateful for many years of mutually beneficial business relationship with Datatel and for impeccable customer service we have received during these years.”

Director of Student Accounts

“We, Standard Life, very much appreciated Datatel’s expertise, knowledge and support as we worked through the development and implementation stages. Our Clients appreciate the simplicity of the capability, while gathering very valuable feedback. Thanks for making this a very positive experience.”

Anne Pennell, VP, Customer Services Operations, Standard Life

“This was one of the best implementations I have been a part of. The communication was excellent and everything was responded to and dealt with swiftly. A real pleasure. We are looking forward to the impact this will have on our patient payments! Thank you!”

Kim Pace, Director Patient Accounts and Revenue, Chatham-Kent Health Alliance