Online businesses have more payment options than ever.

Customers want payment methods that are fast, secure and easy to use. Offering different ways to pay can help businesses reach more customers and create a better checkout experience.

One option is bank-account-based payments.

These payment methods let customers pay directly from their bank account. They can offer an alternative to traditional card payments and give businesses another way to accept online payments.

What Are Bank-Account-Based Payments?

Bank-account-based payments allow customers to make electronic payments directly from their bank account.

Instead of entering credit or debit card details, customers connect to their bank to authorize the payment.

In Canada, Interac e-Transfer® is a familiar example of a bank-based payment method.

Bank-account-based payments can offer several benefits for online businesses, including:

• A simpler checkout experience
• Lower payment costs
• Strong payment security
• Access to more customers
• Support for recurring payments

Why Should Online Businesses Offer Bank-Account-Based Payments?

1. Create a Simpler Checkout Experience

Customers want checkout to be easy.

Traditional card payments can require customers to enter several pieces of information, including:

• Card number
• Expiry date
• Security code
• Billing information

Bank-based payments can reduce the amount of manual data entry.

Customers can authorize a payment through their bank instead.

A simpler payment flow can help reduce friction at checkout and make it easier for customers to complete a purchase.

2. Potentially Reduce Payment Costs

Payment costs can have a direct impact on an online business's margins.

Card payments can include several types of fees, such as interchange and transaction fees.

Bank-account-based payments can provide another payment option with a different cost structure.

For businesses with high payment volumes, even small differences in processing costs can add up.

Offering bank-based payments can therefore give businesses another way to manage payment costs.

3. Add Another Layer of Payment Security

Security is important for both businesses and customers.

Bank-account-based payments can provide a secure way for customers to authorize transactions through their financial institution.

Payment providers can also use risk management tools to identify suspicious activity.

Paramount Commerce uses machine learning and payment data to help identify potential payment risks in real time.

This can help businesses manage fraud while reducing unnecessary declines.

4. Reach More Customers

Not every customer wants to pay by card.

Some customers may:

• Prefer to pay directly from their bank account
• Not have a credit card
• Avoid using credit cards online
• Want more control over their spending
• Prefer familiar Canadian payment methods

Offering bank-account-based payments gives these customers another way to pay.

A wider range of payment options can help businesses serve more customers and reduce payment friction.

5. Make Recurring Payments Easier

Subscriptions and recurring payments are common across many online businesses.

Customers may pay for:

• Software
• Streaming services
• Memberships
• Gaming
• Online services
• Recurring bills

Bank-based payment solutions can support these types of payment experiences.

Paramount Commerce also offers Instant Bank Transfer with One-Click payments.

This can allow returning customers to make payments without entering their bank details each time, depending on the payment flow.

For businesses, a simpler repeat payment experience can help support customer retention and conversion.

Bank-Based Payments vs. Card Payments

Bank-account-based payments do not need to replace cards.

They can work alongside existing payment methods.

Offering multiple payment options allows businesses to give customers more choice.

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What Should Businesses Look for in a Bank-Based Payment Provider?

Choosing a payment provider involves more than looking at price.

Businesses should also consider:

• Payment coverage: Which banks and payment methods are supported?
• Security: What tools are used to manage payment risk?
• Integration: How easy is the solution to add to an existing checkout?
• Customer experience: How many steps does the customer need to complete?
• Scalability: Can the payment solution support higher volumes as the business grows?
• Support: Can the provider help with technical and payment issues?

A provider that understands the local payment market can also help businesses build a payment experience around how their customers prefer to pay.

How Paramount Commerce Supports Bank-Based Payments

Paramount Commerce provides bank-based payment solutions for online businesses in Canada.

Its payment solutions include:

• Interac e-Transfer®
• Instant Bank Transfer
• One-Click payments
• Online Bank Verification
• Payment risk management
• Canadian bank connectivity

These solutions can help businesses offer customers a familiar way to pay directly from their bank account.

The Bottom Line

Bank-account-based payments give online businesses another way to accept payments.

They can help businesses:

• Simplify checkout
• Give customers more payment choice
• Manage payment costs
• Support secure transactions
• Reach customers who prefer bank-based payments
• Create easier repeat payment experiences

For businesses looking to improve their checkout, adding bank-based payments can be a practical way to give customers more choice without removing existing payment methods.

Ready to simplify your payment experience? Talk to Paramount Commerce about bank-account-based payments for your business.

FAQs

What are bank-account-based payments?

Bank-account-based payments allow customers to pay directly from their bank account instead of using a credit or debit card.

The customer typically connects to their bank and authorizes the payment.

What is an example of a bank-account-based payment in Canada?

Interac e-Transfer® is a well-known Canadian bank-based payment method.

Other solutions can also allow customers to make payments directly from their bank account.

Are bank-account-based payments secure?

Bank-based payments can provide a secure way for customers to authorize payments through their financial institution.

Businesses should also choose payment providers with strong security and fraud management tools.

Can bank-account-based payments reduce payment costs?

They can offer a different cost structure from card payments.

The actual cost will depend on the payment provider, transaction volume, payment method and business model.

Can businesses offer bank-based payments and cards?

Yes.

Businesses can offer bank-account-based payments alongside credit cards, debit cards and other payment methods.

Giving customers more choice can help create a smoother checkout experience.

Are bank-account-based payments suitable for recurring payments?

They can be.

Bank-based payment solutions can support recurring payment use cases such as subscriptions, memberships and recurring bills.

The available features depend on the payment provider and payment solution.

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