Understanding pay by bank
Overview
Pay by bank is a secure, direct way for consumers to make payments from their bank accounts—no cards or wallets required.
Aeropay’s solution simplifies the payment process, lowers costs, and strengthens compliance, especially for regulated industries. The system combines account verification with real-time payment processing to deliver fast, protected transactions.
What it is
Pay by bank allows consumers to make purchases directly from their bank account using secure authentication instead of entering card details.
With login-based authorization through their bank, users experience a smoother, safer checkout—while businesses save on processing fees by cutting out card networks.
How it works
- Authentication
- First-time users link their bank account using Aeropay’s fast, secure gateway. The process uses open banking APIs for secure and lasting account verification.
- Authorization
- Real-time fraud checks ensure only valid transactions go through, helping prevent returns and reduce risk.
- Money movement
- Payments are routed via:
- ACH (1–3 day settlement, or same day ACH)
- RTP (real-time payments via The Clearing House)
- FedNow (instant, 24/7/365 payments via the Federal Reserve)
Aeropay intelligently selects the best available rail for each transaction.
Business benefits
- Significantly lower fees → Up to 72% cheaper than card processing due to use of ACH.
- Higher conversions → Streamlined onboarding and biometric login can lift conversions by 25%+.
- Guaranteed payments → Aeropay eliminates payment failure risks with guaranteed ACH processing.
- High approval rates → AI-powered models maintain 90%+ approval, outperforming typical providers.
- Real-time financial data → Open banking access enables balance checks, account verification, and stronger fraud prevention.
Read more at aeropay.com