ACH credit transfers

Credit transfers on the Automated Clearing House (ACH) network enable customers to send funds from their bank account to a US-domiciled bank account. In 2019, the ACH network moved 24.7 billion electronic payments, making it one of the largest, safest, and most reliable payment systems.

To collect a payment via ACH credit transfer, you must provide a routing and account number to your customers, who then initiate the payment from their bank account. Funds can take a few days to arrive; however, some financial institutions process same-day ACH credit transfers, allowing for accelerated movement of funds.

ACH debits

Direct debit payments on the Automated Clearing House (ACH) network, or ACH debits, allow you to collect funds from your customers’ US bank accounts. The ACH network processed more than 14 billion debit transactions in 2019.

Your customers must provide their bank account details and give you permission to debit their account. Confirmation for ACH debit payments can take up to five business days.

ACH debits can fail or can be disputed by customers after the payment is initially completed. These risks can be mitigated by verifying account ownership through login credentials or micro-deposits.

Affirm

Affirm is modernizing consumer credit and changing the way people shop. Their predictive technology delivers personalized payment options that are tailored to each purchase, including flexible payment plans from 4 interest-free payments every 2 weeks to longer installments up to 36 months.

Affirm partners with 235K retailers and has a network of over 31 million addressable customers in the US and Canada. Customers have the flexibility to buy what they want today and make simple payments over time. Affirm’s transparent terms (no fees, no compounding interest) boost customer satisfaction and can result in higher conversion rates and repeat purchases for merchants.

Businesses are paid the full amount of the purchase up front, and Affirm handles collecting payments from customers and between Affirm and Stripe.

Afterpay/Clearpay

Afterpay (also known as Clearpay in the UK) offers customers more payment flexibility with no credit checks, no upfront fees, and no interest for on-time payments. Afterpay has more than 13 million global customers and works with 75,000 brands and retailers.

Afterpay allows customers to get what they want today and pay for purchases over time. During checkout, customers choose Afterpay as their payment method and spread the cost across four interest-free payments over the next six weeks, with the first payment due at time of purchase. Afterpay is free for customers who pay on time.

Businesses offering Afterpay receive the full payment upfront and are protected against fraud and customer payment risk.

Alipay

Alipay is a popular wallet in China, operated by Ant Financial Services Group, a financial services provider affiliated with Alibaba. Launched in 2004, Alipay currently has more than one billion active users worldwide.

Alipay wallet holders can pay on the web or on mobile using their login credentials or their Alipay app. Funds are drawn from the customer’s bank, card, or prepaid Alipay account and because payments are authenticated with the customer’s login credentials, dispute rates are very low.

Apple Pay

Apple Pay is a wallet that allows customers to pay using payment details stored on their iPhone, iPad, or Apple Watch.

To make a payment online, customers select Apple Pay as the payment method and authorize the transaction via Face ID, Touch ID, or a passcode. This two-factor authentication makes transactions more secure and often results in fewer disputes compared to other payment methods.

In addition to payment information, customers can also store their billing and shipping address, email, and phone number.

View video of customer-facing web flow for Apple Pay here.

Bacs Direct Debit

Bacs Direct Debit is a bank transfer payment method that accounts for 14% of the market share in the United Kingdom. It is also the most popular method for sending and receiving recurring payments.

You are required to get explicit approval from customers in order to debit their account. Customers may cancel this approval at any time with their bank and can reclaim payments indefinitely via Bacs’ evergreen dispute policy.

Payments via Bacs Direct Debit take three working days to clear and are always presented in GBP. Funds can only be taken from UK-domiciled GBP bank accounts.

Bancontact

Bancontact, founded in 1979 and formerly known as Bancontact/Mister Cash, is a bank redirect payment method offered by more than 80% of online businesses in Belgium.

Bancontact payments are authenticated by customers and immediately confirmed to your business. Using their mobile app, customers can identify by scanning a QR code presented at the time of payment. Each transaction is then confirmed with a PIN. Bancontact payment details are single-use; however, each transaction allows you to retrieve customers’ bank account details, enabling subsequent payments to be completed via SEPA Direct Debit (see below) with the appropriate mandate authorization.

BECS Direct Debit

Bulk Electronic Clearing System (BECS) is an Australia-based payment method administered by the Australian Payments Network for electronic debit and credit payment instructions. It accounted for 19% of noncash transaction value in Australia in 2018.

During the payment flow, you must collect a mandate: Customers need to provide their bank account details—consisting of the account holder’s name, the Bank State Branch (BSB) number, and the bank account number—and accept the service agreement.

It can take up to four business days to receive notification of the success or failure of a payment after you initiate a debit from the customer’s account.

Boleto

Boleto is a popular Brazilian voucher-based payment method and represents more than 20% of transactions in Brazil. Boleto allows customers to pay for online purchases or services with cash or from their bank.

To complete a transaction, customers receive a voucher stating the amount to pay for services or goods. Customers then complete the payment before its expiration date using one of several different methods, including at authorized agencies or banks, ATMs, or online bank portals. You will receive payment confirmation after one business day, while funds will be available for payout two business days after payment confirmation.

Boleto doesn’t offer any cancellations, and disputes are typically managed directly between you and the customer.

Cards

Credit and debit cards (Visa, Mastercard, American Express, Discover and Diners, China UnionPay, JCB, Cartes Bancaires, Interac) are a dominant payment method globally, accounting for 41% of online payments.

Credit cards are issued by banks and allow customers to borrow money with a promise to pay it back within a grace period to avoid extra fees. Consumers can accrue a continuing balance of debt, subject to being charged interest on the amount.

Debit cards offer the convenience of card payments but are linked to a bank account, where funds are drawn directly from the linked account at the time of payment.

Visa and Mastercard, the largest card networks in the world, function exclusively as payment processing systems that do not issue cards to consumers directly. Instead, they allow banks and financial institutions to brand and distribute their cards. American Express is also a payment processing system that—unlike Visa and Mastercard—issues its own cards directly to consumers.

View video of customer-facing flow for cards here.

Click to Pay

Click to Pay, based on the Secure Remote Commerce (SRC) specifications, provides a unified checkout process supporting all participating network brands, including Visa, Mastercard, American Express, and Discover. Customers can add cards from participating networks and enable Click to Pay simply and securely.

To complete a transaction, customers select the Click to Pay checkout option. In some instances, they may be required to confirm their identity. Once they are authenticated, the payment cards enrolled in Click to Pay appear as payment method options. Customers select which card they wish to use and confirm payment and shipping information.

EPS

EPS is an Austrian online transfer payment method with approximately 18% market share. It’s accepted by 80% of all online businesses in Austria and was developed jointly by the Austrian banks and government.

At checkout, customers choose EPS, select the name of their bank, and log in to their online banking environment. They review the prepopulated payment details and authorize the funds to be credited directly to your business account.

EUR bank transfers

Bank transfers on the Single Euro Payments Area (SEPA) network are payer-initiated payment methods that enable customers to send funds from their bank account to another European-domiciled account. With lower transaction fees, bank transfers are one of the preferred methods for high-value payments, accounting for $4 trillion in B2B transactions in Europe every year.

When accepting SEPA bank transfers with Stripe, businesses provide customers with a virtual bank account number that they can push money to from their own online bank interface. The virtual bank account allows for automated reconciliation and seamless refunds.

FPX

Financial Process Exchange (FPX) is a Malaysia-based payment method that allows customers to complete transactions online using their bank credentials. Bank Negara Malaysia (BNM), the Central Bank of Malaysia, and 11 other major Malaysian financial institutions are members of the PayNet Group, which owns and operates FPX. It is one of the most popular online payment methods in Malaysia, with nearly 90 million transactions in 2018.

In order to pay with FPX, customers are redirected to their online banking environment, where they have to perform two-step authorization, like entering a one-time passcode sent via SMS. The exact customer experience will vary depending on the bank.

View video of customer-facing flow for FPX here.

GBP bank transfers

GBP transfers on Bacs Payment Schemes Limited (BACS), Faster Payment System (FPS), or Clearing House Automated Payment System (CHAPS) networks are payer-initiated payment methods that enable customers to send funds from their bank account to another UK-domiciled account. With lower transaction fees, it is one of the preferred methods for high-value payments—98.5% of UK businesses use bank transfers for business-to-business (B2B) payments.

When accepting bank transfers with Stripe, businesses provide customers with a virtual bank account number that they can push money to from their own online bank interface. The virtual bank account allows for automated reconciliation and seamless refunds.

giropay

giropay is an online bank transfer payment method offered by more than 1,500 banks in Germany.

Customers are able to complete transactions using their online bank credentials, with funds being debited from their bank account. Depending on their bank, customers confirm payments using a second-factor authentication or a PIN. Payments are immediately confirmed to your business and irrevocable.

Because giropay uses real-time bank transfers, payments are 100% guaranteed.

View video of customer-facing flow for giropay here.

GrabPay

GrabPay is a digital wallet developed by Grab—a popular super-app in Southeast Asia. Customers maintain a balance in local currency in their wallets that they can then use to pay for purchases with Grab and other merchants.

In order to pay with GrabPay, customers are redirected to GrabPay’s website, where they have to authenticate the transaction using a one-time password. After authenticating, customers will be redirected back to your website or app.

Google Pay

Google Pay allows customers to pay with any payment method saved to their Google account.

Google Pay works in Android-native apps and across the web. To make a payment online, customers select Google Pay as the payment method and select which payment credential they would like to use. These include credit and debit cards the customer may have used on any Google property, such as Chrome, YouTube, or the Play Store. Google Pay does not allow users to hold a balance.

In addition to payment information, you can request the customer’s billing and shipping address and contact information.

iDEAL

iDEAL is a Netherlands-based payment method that allows customers to complete transactions online using their bank credentials. All major Dutch banks are members of Currence, the scheme that operates iDEAL, making it the most popular online payment method in the Netherlands with a share of online payments close to 55%.

In order to pay with iDEAL, customers are redirected to their online banking environment where they can authenticate the payment using a second factor of authentication. The exact customer experience depends on the bank. Payments are irrevocable and immediately confirmed.

While iDEAL payments are single-use, subsequent recurring payments can be completed via SEPA Direct Debit transactions.

View video of customer-facing flow for iDEAL here.

Klarna

Klarna offers flexible payment options that give customers more freedom to choose when and how to pay for a purchase. Klarna provides payment solutions for 90 million consumers and over 200,000 businesses across 19 markets.

There are four different ways for customers to pay for a transaction with Klarna: Pay in Installments, Pay Later, Pay Now, and Financing. You can choose to offer one, two, or multiple options. You are paid upfront and are protected against fraud and customer payment risk.

Klarna Pay in Installments allows customers to make an online purchase and spread the cost over three or four interest-free payments (in the UK, customers pay in three installments).

Klarna Pay Later in 30 days lets customers immediately complete a transaction and pay the full amount later at no additional cost.

Pay Now is offered in many European countries and lets a customer pay for a transaction immediately using stored payment credentials. Supported payment methods include bank transfers or direct debit.

Klarna Financing offers customers up to 36 months of credit. To receive financing, they complete a one-time application. If approved, customers make their monthly payments to Klarna online or in the mobile app.

Meses sin intereses

Installments is a feature of consumer credit cards in some markets that allows customers to split purchases over multiple billing statements. You receive the full amount (minus a fee) as if it were a normal charge, and the customer’s bank handles collecting the money over time.

In Mexico, installments are known as “meses sin intereses.” Stripe supports payments with meses sin intereses for Stripe Mexico accounts using the Payment Intents API and Payment Methods API, Checkout, Invoicing, and Payment Links.

Mexico bank transfers

Bank transfers in Mexico are payer-initiated payment methods that enable customers to send funds from their bank account to another Mexican-domiciled account. Due to lower decline rates, fraud, and transaction costs, bank transfers are widely used for both B2B and B2C transactions—two billion transactions were made in 2021, an increase of 60% from 2020.

When accepting bank transfers with Stripe, businesses provide customers with a virtual bank account number that they can push money to from their own online bank interface. The virtual bank account allows for automated reconciliation and seamless refunds.

Microsoft Pay

Microsoft Pay is a wallet that allows customers to store their payment and shipping information so their details are auto-populated when paying from Windows devices.

Customers are prompted to sign in with their Microsoft account and authorize the payment by confirming the card’s security code.

Multibanco

Multibanco is an interbank network that links the ATMs of all major banks in Portugal, allowing customers to pay through either their ATM or online banking environment. Multibanco has a 30% share of the payments market in Portugal.

At checkout, customers select the Multibanco payment method and then log into the Multibanco page, which displays a reference number and other transaction details. Customers use these details to initiate a payment via online banking or from an ATM.

Payments processed with Multibanco should succeed immediately; however, Multibanco sources will be pending until your bank receives the funds (which can take up to a few days depending on how and when the customer chooses to complete the transaction).

OXXO

OXXO is a Mexican chain of convenience stores with thousands of locations across Latin America and represents more than 30% of transactions in Mexico. OXXO allows customers to pay bills and online purchases in store with cash.

To complete a transaction, customers receive a voucher that includes a reference number for the transaction. Customers then bring their voucher to an OXXO store to make a cash payment. You will receive payment confirmation by the next business day along with the settled funds.

OXXO doesn’t offer any cancellations, and disputes are typically managed directly between you and the customer.

Pre-authorized debits in Canada

Pre-authorized debits (PADs) are used to collect direct debit payments from customers in Canada. In 2019, more than C$876 billion was processed through bank debits.

You are required to get explicit approval, in the form of a pre-authorized debit agreement, from customers in order to debit their accounts. The agreement must outline the debited amount, the frequency of withdrawals, and how customers can cancel the agreement (among other things).

Customers have 90 days from the date of withdrawal to report an incorrect or unauthorized debit.

Przelewy24

Przelewy24 (P24) is a Polish payment method that facilitates the transfer of funds between more than 90,000 businesses and all major Polish banks. Przelewy24 allows consumers to pay for internet-based transactions using direct online transfers from their bank account.

In order to pay with Przelewy24, customers are redirected to an online environment where they can authenticate their payment by logging into their bank’s site. For the majority of banks, destination details (Przelewy24’s bank account) are prepopulated, though in some cases the consumer has to enter details manually.

Upon successful authentication, funds are guaranteed. A business-initiated refund is the only way to reverse funds.

SEPA Direct Debit

The Single Euro Payments Area (SEPA) is an initiative of the European Union to simplify payments within and across member countries. They established and enforced banking standards to allow for the direct debiting of every euro-denominated bank account within the SEPA region, facilitating more than 20 billion transactions every year.

In order to debit an account, you must collect your customer’s name and bank account number in IBAN format. As part of the payment confirmation, customers must accept a mandate that authorizes you to debit the account.

Customers are able to dispute a SEPA Direct Debit transaction within eight weeks on a “no questions asked” basis: Funds will automatically be returned to them. Beyond that point and over the following 11 months, they are still able to dispute transactions that were not backed by an appropriately authorized mandate. During that period, the arbitration process involves both your bank and the customer’s bank. After 13 months, disputes are no longer possible.

SOFORT

SOFORT is a bank transfer-based payment method that was acquired by Klarna, a Swedish banking company, in 2014. It has 85 million users in 15 countries.

In order to pay with SOFORT, customers are redirected to SOFORT’s site where they enter their bank login credentials. Upon authentication, SOFORT initiates a bank transfer from their bank account.

Although successful authorization indicates a very high likelihood of payment, funds are not guaranteed to your business until they are actually received, which is typically two business days later (but can be up to 14 days later). Once received, payments cannot be reversed except by business-initiated refunds.

View video of customer-facing flow for SOFORT here.

WeChat Pay

WeChat Pay, the wallet inside the popular Chinese messaging app WeChat, has more than 900 million active monthly users.

Customers must first add their credit card to their WeChat Wallet (WeChat Pay supports Visa, Mastercard, American Express, Discover, JCB, and Chinese bank cards). They can then make a payment directly in the WeChat app or via QR code.