3 PAYMENT METHOD SCORECARD: PAY BY BANK (BANK TRANSFER)
3.4 Pay by Bank Bank Transfer Security
Refund Mechanisms While not impossible, it is more difficult to receive refunds with bank transfer payments in comparison to card payments. Brand Risk There is no brand risk for merchants whether they accept bank transfer as a payment method option or not. Fraud Risk (Merchant) Bank transfers are not as prone to fraud risk regarding merchants directly; however, fraudsters could use merchants brand in their scams which could influence consumer’s view of them. Fraud Risk (Consumer) In a situation where a consumer is defrauded via a bank transfer, getting money back is possible, but not easy.
Metrics
Weight Score
Approvals Considerations Error Resolution Framework System Liability Rules (i.e. Network Rules)
15% 5.0
15% 3.0
20% 3.0
Refund Mechanisms
10% 3.0 10% 3.0 15% 4.0 15% 2.0
Brand Risk
Fraud Risk (Merchant) Fraud Risk (Consumer)
TOTAL SCORE
3.3
Approvals Consideration False declines are not common in bank transfer transactions. This is mostly because bank transfers are considered “push” transactions where the consumer is initiating the transaction and giving approval to the bank to send funds to the merchant. Error Resolution Framework Error resolution varies by the means of the bank transfer. In the United States, there is the Electronic Funds Transfer Act and Regulation E which obliges financial institutions to investigate and correct errors covered by the regulation. 830 Liability Rules (i.e., Network Rules) Liability rules are not always so clear for bank transfer payments, however, Nacha in the U.S. provides rules for to address improper use of reversals for Automated Clearing House (ACH) payments. 831
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