3 PAYMENT METHOD SCORECARD: PAY BY BANK (BANK TRANSFER)
Decision-Making Forums Bank transfers are included in discussions hosted by the U.S. Payments Forum but would not be
Governance
Metrics
Weight Score
considered a high-priority topic. Decision-Making Balance
Presence of Regulation (Merchant) Presence of Regulation (Consumer) Central Monitoring (Public/ Private) Decision-Making Forums Decision-Making Balance
13% 3.0
13% 3.5
Governance is a mixture of public and private organizations. Including more stakeholders in the decision-making process surrounding bank transfers could prove beneficial. Fee Setting There is no centralized fee setting structure, allowing competition to determine the pricing. Central Bank Support Platforms like FedNow, SEPA, and BACS are all supported by central banks; however, the Automated Clearing House is ran by Nacha which is a not-for-profit owned by banks, showing that central banks are not always involved in supporting bank transfers.
13% 3.0
13% 5.0 25% 4.0 13% 4.5 13% 4.0
Fee Setting
Central Bank Support
TOTAL SCORE
3.9
Regulation Presence (Merchant) Open banking, like the Payments Service Directive 2 in the EU, paves the way for merchants to engage with new payment providers. However, to compete with card payments, this regulation on its own has not proven to be enough. The banking industry can be discouraged from investing in new open banking technologies given the advantage of interchange fees in the card industry. Regulation Presence (Consumer) Providers like the ACH in the U.S., BACS, and SEPA in the EU, are mandated to utilize multi-factor authentication to provide security for consumers. Consumers in the EU are covered for potential fraud risk by requiring SEPA to allow them to request refunds from fraudulent activity within 13 months of the incident. 834 Central Monitoring (Public/Private) The central monitoring authority varies by country. ACH in the U.S. is ran by Nacha which is a not-for- profit owned by banks. SEPA in the EU is centrally organized by the European Commission. BACS in the U.K. is owned by banks but supervised by the Bank of England.
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