Direct bank payments in ecommerce are account-to-account (A2A) transfers that move money from a customer’s bank to a business’s. These payments use the same infrastructure that powers payroll, rent, and bill payments. They’re often faster and more reliable than traditional card payments, and they can reduce transaction fees and failed payments while offering customers a familiar, reliable way to pay.

Many online businesses are tapping into this payment method, from ACH payments and bank transfers in the US to real-time payment networks such as UPI in India, PIX in Brazil, or SEPA Instant in Europe. Global A2A payments are projected to grow to $5.7 trillion by 2029. Below, we’ll explain how banking payments in ecommerce work, what makes them valuable, and what to know before adding them to your checkout.

What’s in this article?

• What are banking payments in ecommerce?
  
• How do banking payments work for online transactions?
  
• What types of banking payments can ecommerce businesses use?
  
• Why use banking payments instead of cards or digital wallets?
  
• How can ecommerce businesses add banking payments to their checkout?
  
• What challenges come with banking payments in ecommerce?
  
• How Stripe Financial Connections can help
  

What are banking payments in ecommerce?

Banking payments in ecommerce move money directly from a shopper’s bank account to a business’s bank account without using cards, digital wallets, or middle networks. They’re sometimes called account-to-account (A2A) or bank transfer payments.

These payments are authenticated and authorized by the customer’s own bank, often through a secure redirect or bank login. There are no card numbers to enter and no separate accounts to create. It’s the same basic transfer someone might use to pay a bill or send a rent payment, but available in an ecommerce checkout flow.

How do banking payments work for online transactions?

When a customer pays from their bank account, the money moves in two main ways: The customer either pushes the payment, or the business pulls it.

In a push payment, the customer initiates the transfer. At checkout, they choose “pay by bank,” select their bank, and log in through a secure redirect or banking app. Their bank shows the transaction details, the customer approves it, and the funds move instantaneously (or near-instantaneously).

In a pull payment, the business charges the customer’s account with permission. A customer authorizes the business to withdraw funds, and the business’s payment processor initiates the debit through a network such as ACH in the US or SEPA in Europe. Settlement can take a few days, and once it clears, the funds land in the business’s account. Direct debit is one type of pull payment.

In push and pull payments, banks handle authentication and security directly, usually through strong customer verification such as biometrics or multifactor login.

What types of banking payments can ecommerce businesses use?

Ecommerce businesses have several ways to accept payments straight from customers’ bank accounts. The best method depends on your business model, frequency of payments, and where your customers bank.

Options include:

• Direct debit: In this scenario, a business pulls funds from a customer’s bank account after they’ve given permission. This type of banking payment is common for subscriptions and recurring invoices because payments run automatically once authorized. These payments are easy and convenient to set up, although settlements usually take a couple of days. There are no card expirations or missed renewals.

• Bank transfers and wire transfers: These are classic bank-to-bank payments, often used for large orders or B2B transactions. A customer can manually transfer the amount or complete it automatically through checkout. Domestic transfers usually settle the same day. International wires take longer and can involve higher fees.

• ACH payments: ACH debits are typically used for recurring billing, while ACH credits work for payouts. They’re slower than card payments but less expensive, often just cents per transaction. Same-day ACH options now make these payments faster and more predictable.

• Real-time payments: Systems such as RTP and FedNow in the US, Faster Payments in the UK, SEPA Instant in Europe, PIX in Brazil, and UPI in India move funds instantly, any time of day. Customers approve the payment in their banking app, and businesses see cleared funds within seconds.

Why use banking payments instead of cards or digital wallets?

Banking payments offer a mix of cost savings and security that makes them valuable in ecommerce.

Here’s a closer look at their benefits:

• Lower transaction costs: Card processing can cost 2–3% per transaction, while ACH or local bank transfers typically charge a small flat fee or a fraction of a percent. Over time, those savings can be substantial, especially for high-value purchases or thin-margin businesses.

• Stronger security: Each transaction is authenticated directly by the customer’s bank using multifactor or biometric verification. That cuts down on fraud and stolen credentials because there’s no card number to expose or reuse.

• Greater trust and familiarity: Customers are already familiar with their bank’s login process. Paying directly through their bank feels safe and straightforward, especially for shoppers who avoid storing card details online or don’t have a credit card.

• Fewer failed payments: Card transactions can fail due to limits, expired cards, or fraud checks. Bank payments move money directly from available funds, which reduces declines and payment drop-offs.

• Fewer chargebacks and disputes: Once approved, bank transfers are hard to reverse. That stability protects businesses from chargeback abuse and keeps revenue predictable.

• Instant confirmation: Over 70 countries worldwide have instant bank payment transfer systems, which means payments are made in seconds. This makes the process easier for businesses and customers.

• Global coverage: Many markets worldwide favor local bank payment systems. Supporting these methods means you can offer customers the payment options they already use.

How can ecommerce businesses add banking payments to their checkout?

With the right provider and strong user experience (UX), businesses can add bank payments to their checkout with little development time. Create an easy, lower-cost payment experience by following these principles:

• Choose a payments provider that supports bank payments: Use a provider that offers direct debits or local real-time payment options through one integration. A provider such as Stripe handles these methods globally, so you don’t have to build direct connections to individual banks.

• Meet compliance and authorization requirements: Some bank networks require customer mandates or business verification before you can process payments. For example, SEPA Direct Debit needs an electronic authorization from the customer, while ACH has its own consent rules. A good provider automates most of this work to ensure you meet local standards.

• Integrate the option into checkout: Add a “Pay by bank” or “Bank transfer” button where customers expect it, alongside cards and wallets. The flow should be simple: a bank login or account entry, confirmation, and return to checkout. Make sure to test the flow on mobile, where customers often use their banking app to approve payments.

• Communicate transparently: Tell customers what’s happening at each step and reassure them that their credentials stay with their bank, not the business. Use plain, confidence-building language (e.g., “You’ll be securely redirected to your bank to confirm payment”), and set timing expectations for slower networks such as ACH.

• Monitor and refine: Track adoption, drop-off rates, and settlement times. Adjust design or messaging based on what customers respond to best.

What challenges come with banking payments in ecommerce?

Banking payments can be cost-effective and secure, but they’re not perfect.

A few challenges shape the way businesses adopt them:

• Settlement times: Some methods aren’t instant. Standard ACH payments in the US and SEPA Direct Debit in Europe typically take one to three business days to clear, but can take up to five. Real-time systems are expanding fast—global real-time payment volume rose 42% in 2024—but not all banks or regions support 24/7 processing yet.

• Cross-border complexity: Bank payments work best within local networks. International transfers might face delays, currency conversion costs, or compliance hurdles. While efforts are underway to overcome some of these issues, scaling globally requires multiple local integrations or a unified payments provider.

• Payment failures and returns: Pull-based payments such as ACH and SEPA Direct Debit can fail if an account lacks funds. Using instant balance verification or guaranteed payments can reduce that risk.

• Customer adoption: Even as awareness grows, shoppers still tend to default to using cards in some regions. In 2024, only around 11% of US adults had used a pay-by-bank option in the last year. Clear design and customer education are necessary for building adoption.

• Operational handling: Actions such as refunds and reversals work differently from card payments. Businesses need to adapt accounting and support workflows for bank-based settlements.

How Stripe Financial Connections can help

Stripe Financial Connections is a set of application programming interfaces (APIs) that allows you to securely connect to your customers’ bank accounts and retrieve their financial data, enabling you to build innovative financial products and services.

Financial Connections can help you:

• Simplify onboarding: Offer a seamless, instant bank account verification process that does not require manual identity and account verification.

• Access rich financial data: Retrieve comprehensive information about your customers’ bank accounts, including balances, transactions, and account details.

• Automate recurring payments: Enable your customers to securely link their bank accounts for recurring payments, improving payment success rates.

• Enhance risk management: Analyze customers’ financial data to make more informed decisions about credit, lending, and other financial products.

• Comply with regulations: Financial Connections helps you meet Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

• Innovate with confidence: Build new financial products and services on top of the secure, reliable Financial Connections infrastructure.

Learn more about Financial Connections, or get started today.