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Read about Mastercard's perspective on open banking.
Pay by Bank (US) is based on open banking. It allows shoppers to pay from their bank through an account-to-account payment, which makes the payment experience user-friendly, secure, and cost-effective.
When a shopper selects to pay with Pay by Bank (US), the shopper is redirected to our open banking partner Plaid. Plaid collects the shopper's permission to connect their account to Plaid, and lets the shopper select their issuing bank. After selecting a bank, the shopper is redirected to the bank's website or mobile app to give permission to collect the required data to complete the payment. Then the shopper is redirected back to your website or app.
By connecting their bank account to Plaid, shoppers do not need to log in to their bank's website or app every time for later payments through your website or app.
Pay by Bank (US) transactions are routed over the ACH Direct Debit network.| Payment type | Payment flow | Countries | Currencies | Recurring | Refunds | Partial refunds | Multiple partial refunds | Separate captures | Partial captures | Multiple partial captures | Chargebacks |
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| Online Banking | Redirect | US | USD |
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Designed for tokenization
As described above, shoppers are redirected and need to complete several steps for their first Pay by Bank (US) payment in your website or app. Due to the steps involved in this process, shoppers may drop off, and the conversion on first transactions can be lower.
We therefore recommend to tokenize the shopper's payment details during their first transaction. Subsequent transactions are then frictionless: the shopper only has to select the Pay button, and is not redirected away from your site or app. The payment is completed using the shopper's stored payment details.
Chargebacks
Pay by Bank (US) relies on the ACH Direct Debit network for the funds flow. This means that the returns mechanism for ACH also applies to Pay by Bank (US). The biggest difference is that Pay by Bank (US) uses strong account validation and includes checks on the account balance and risk checks. As a result, the risk of returns is significantly lower compared to ACH Direct Debit.
However, the risk of returns cannot be entirely eliminated. For example, business-to-business transactions can be reversed if your customer's business account doesn't have Adyen's ACH Company ID 8263863381 in their allowlist. Also, customers can ask for a refund up to 60 days after the payment is settled to your account.
If a Pay by Bank (US) payment is returned, your Settlement details report will show a debit line, and you receive a CHARGEBACK webhook with a chargebackReasonCode.
You cannot defend Pay by Bank (US) chargebacks. Depending on the reason code, it may be allowed to retry the payment. For an overview of the chargeback process and reason codes, see ACH Direct Debit chargebacks.
How do you want to integrate?
Web
Use our pre-built UI solutions to add Pay by Bank (US) to your website.
iOS
Use our pre-built UI solutions to add Pay by Bank (US) to your iOS app.
Android
Use our pre-built UI solutions to add Pay by Bank (US) to your Android app.
API only
Build your own UI for Pay by Bank (US) in your website, iOS or Android app.