Pay by Bank is a relatively new payment method that is enabled by Open Banking technology. So if it all feels a bit new, you’re not alone! In the coming months, more and more banks and online retailers are likely to offer it as a safer and more convenient way to pay online.
Recently, ITV announced it will be offering it, and others are expected to follow. So it should quickly become more familiar, just as contactless and chip & PIN have become in the past decade.
We asked our Business Analyst, Leanne Phillips, to give us all the info on our newest tool…
What is Pay by Bank?
Pay by Bank is a new fast and secure alternative to depositing payments into your account. In short, it’s our quickest method of transferring funds from your bank account to your credit union account.
How does it work?
By completing just a few simple steps on our website, you can authorize your bank to send funds to your credit union account.
You’ll enter the amount you want to pay into your account, along with your membership number and your name. You’ll be asked to select the bank account you wish to make a payment from. Then you’ll be redirected to your external online/mobile banking (for your chosen bank) where you will confirm the payment.
Don’t worry if you start to complete the form on your computer but usually use your mobile to access your online banking app. You will be given a QR code that will allow you to complete the transaction on your phone.
What are the benefits of using it?
It’s quick and easy!
The Pay by Bank process is quicker and simpler than entering your card details. If you use online banking with an external bank, you only need your member number, name and the amount you wish to transfer.
You no longer need to come into a branch to credit your account and wouldn’t need to type your full address or any long card numbers.
The payment will arrive in your London Mutual account within 15 minutes of authorizing the payment.
Is it secure?
Using Pay by Bank is both safe and secure. To authorize the payment you’ll need to log into your external online banking. So if you usually use facial recognition to log into your external banking app, you would be authorizing your payment in the same way.
Pay by Bank is much safer than carrying cash to your local branch or having to share card info or additional sort codes and account numbers.
When will the money arrive in my account?
The whole process takes around 5 minutes to complete. Once completed the payment will be visible in your credit union account within 15 minutes of you completing your request.
Can London Mutual access my bank account?
London mutual will not be able to see your total bank balance or have access to any of your external bank details, other than those necessary to credit a payment. The authorization is carried out with your external bank and can only be authorized once. The payment is then transferred from your external bank into your credit union account. This is done in a similar way to a bank transfer.
More on Pay by Bank
- How does Pay by Bank work?
- How Secure is Pay by Bank?
- Paying Money into your Account (one-off)
- Using Pay by Bank to Make a one-off Payment