3 PAYMENT METHOD SCORECARD: PAY BY BANK (BANK TRANSFER)
Consumer/Bank Costs Rewards
Cost
Metrics
Weight Score
There are typically no issuer-level rewards for bank transfer payments, although there are examples of merchant-level rewards. For example, Cumberland Farms in the US offers consumers a discount of 10 cents per gallon for using ACH. 833 Interest Payment on Debt Given the nature of bank transfer payments, there is no debt accrued. Surcharging Customers are usually not surcharged for bank transfer payments.
Average Fee Level
15% 5.0 10% 4.0
Competitive Leverage
Competition within Payment Method
15% 2.0
Fixed Cost Rewards
10% 4.0 15% 1.0 15% 5.0 20% 5.0
Interest Payment on Debt
Surcharging TOTAL SCORE
3.8
Merchant Costs Average Fee Level According to CMSPI’s Cost of Payments Analysis, bank transfers average cost is 0.98%. Competitive Leverage For merchants offering subscriptions or recurring purchases, there is pressure to offer this as a payment method. However, for in-store retail use cases, there is not as much pressure. Competition within Payment Method There are a couple of examples of competition within bank transfers, like Germany’s option to route via SEPA (bank transfer) or Girocard (card network) and the United States’ FedNow and The Clearing House fund transfer systems. Fixed Costs Merchants typically accept bank transfer payments via a full-stack processor which assumes its own additional costs. It could be cheaper to build out a unique integration depending on the demand for the payment method.
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