Pay by Bank
| Region | EU, UK |
|---|---|
| Currencies | See the currencies page for details |
| Refunds | Supported via payouts |
| Disputes | Users authenticate directly with their bank, so there is no dispute process and a low risk of unrecognized or fraudulent payments |
| Preauthorization | No |
| Recurring payments | No |
About
Pay by Bank relies on open banking, which allows third-party providers to access banking data and initiate transactions on behalf of customers (in line with applicable regulations). Your platform can allow users to pay directly from their bank account, via a range of bank wire transfer schemes.
How it works
The Pay by Bank payment method allows you to redirect the user to their bank to initiate and authenticate the bank wire.
User chooses payment method
On your app or website, the user selects Pay by Bank as the payment method.
Optionally you can present the user with the list of banks for their Country. If you provide the BankName in your API request, the user doesn’t have to choose it on the hosted page.
You can also invite the user to select the Scheme they wish to use, otherwise the instant one is used by default (if supported by the bank). See below for more about banks and schemes.
In Germany (DE), banks impose an additional authentication step that can be avoided if you also obtain and provide the user’s IBAN and BIC up front. Otherwise, these details enable the account to be preselected.
Payment initiation
You initiate the payment request by calling POST Create a Pay by Bank PayIn, specifying the ReturnURL to which the user will be returned after payment (whatever the outcome).
If the ReturnURL redirects to your app, rather than a website, you need to also set the PaymentFlow to APP.
You should also provide the BankName, IBAN, BIC, and Scheme if you obtained them from the user.
Caution – Pay-in currency must match account currency
The currency of the pay-in request must correspond to the currency of the account the user selects, otherwise the user is returned an error and the pay-in fails.
Redirection
You redirect the user to the hosted page via the RedirectURL in the API response.
On the hosted page, the user initiates the payment by:
- Selecting their bank (based on
Country), unless specified inBankName - Selecting the account to be debited, which requires authentication to connect to their bank (unless specified by
IBANandBIC) – this is known as the account information service (AIS) that is authenticated in some countries, notably Germany - Authenticating their payment – this is known as the payment initiation service (PIS) which is always authenticated in all countries
Note – Session timeout 9 minutes
The Pay by Bank session lasts for 9 minutes, at which point the pay-in fails automatically if no action has been taken by the user.
Return
After payment, the user is returned on your specified ReturnURL:
- To a website if
PaymentFlowisWEB(default value) - To a mobile app if the
PaymentFlowisAPP
Outcome
If the payment was initiated successfully by the user, then the response parameter ProcessingStatus is returned with its only value PENDING_SUCCEEDED and the Status is CREATED.
ProcessingStatus is only returned if the payment initiation was successful, and it triggers a webhook for the dedicated event type:
PAYIN_NORMAL_PROCESSING_STATUS_PENDING_SUCCEEDED
ProcessingStatus only has one value, PENDING_SUCCEEDED, which is temporarily returned until the final outcome is known. If it is not returned, then the payment was not initiated successfully by the user.
When the bank wire from the user’s account is received on Mangopay’s account, the pay-in’s Status changes from CREATED to SUCCEEDED and the ResultCode changes to 000000. This outcome triggers a webhook for the event type:
PAYIN_NORMAL_SUCCEEDED
Depending on the Scheme that is used, it can take up to 72 hours for the pay-in to succeed.
If the pay-in fails, it’s Status changes to FAILED and a ResultCode and ResultMessage are returned giving the reason (see Functional errors below). This outcome triggers a webhook for the event type:
PAYIN_NORMAL_FAILED
Banks and schemes
Once redirected on the RedirectUrl to the Pay by Bank hosted experience, the user selects their bank (unless sent in BankName) and chooses the account to be debited.
On the hosted Pay by Bank page, however, they are not able to select the scheme used for the payment.
You can send the Scheme in your API request, and we recommend that you present this choice to the user beforehand.
Note – Ensure clear communication with the user
Whether you leave the Scheme choice to the user (recommended) or not, you should communicate clearly which scheme is being used.
Furthermore, it is possible for a bank to charge the user additional fees (separately) for an instant scheme, but this will become less common as markets adapt.
By default (with the exception of Denmark) the local instant payment scheme is used for the payment if it is supported by the bank, otherwise the non-local scheme is used. If Country is DK then there is no default and the Scheme must be specified.
If your API call specifies the instant scheme but the bank doesn’t support it, then the non-instant scheme is used. However, the API returns the value that you sent, even after the funds arrive on Mangopay’s account and the Status becomes SUCCEEDED.
Supported schemes
The following Scheme values are available depending on the Country:
| Country | Supported Scheme values | Default value (if supported by the bank) |
|---|---|---|
AT | SEPA_CREDIT_TRANSFER, SEPA_INSTANT_CREDIT_TRANSFER | SEPA_INSTANT_CREDIT_TRANSFER |
DE | SEPA_CREDIT_TRANSFER, SEPA_INSTANT_CREDIT_TRANSFER | SEPA_INSTANT_CREDIT_TRANSFER |
DK | DANISH_DOMESTIC_CREDIT_TRANSFER, INSTANT_DANISH_DOMESTIC_CREDIT_TRANSFER_STRAKS, INSTANT_DANISH_DOMESTIC_CREDIT_TRANSFER_INTRADAG | No default - must be specified |
EE | SEPA_CREDIT_TRANSFER, SEPA_INSTANT_CREDIT_TRANSFER | SEPA_INSTANT_CREDIT_TRANSFER |
ES | SEPA_CREDIT_TRANSFER, SEPA_INSTANT_CREDIT_TRANSFER | SEPA_INSTANT_CREDIT_TRANSFER |
FI | SEPA_CREDIT_TRANSFER, SEPA_INSTANT_CREDIT_TRANSFER | SEPA_INSTANT_CREDIT_TRANSFER |
FR | SEPA_CREDIT_TRANSFER, SEPA_INSTANT_CREDIT_TRANSFER | SEPA_INSTANT_CREDIT_TRANSFER |
GB | FASTER_PAYMENTS | FASTER_PAYMENTS |
IE | SEPA_CREDIT_TRANSFER | SEPA_CREDIT_TRANSFER |
IT | SEPA_CREDIT_TRANSFER, SEPA_INSTANT_CREDIT_TRANSFER | SEPA_INSTANT_CREDIT_TRANSFER |
LT | SEPA_CREDIT_TRANSFER, SEPA_INSTANT_CREDIT_TRANSFER | SEPA_INSTANT_CREDIT_TRANSFER |
NL | SEPA_CREDIT_TRANSFER, SEPA_INSTANT_CREDIT_TRANSFER | SEPA_INSTANT_CREDIT_TRANSFER |
NO | NORWEGIAN_DOMESTIC_CREDIT_TRANSFER, INSTANT_NORWEGIAN_DOMESTIC_CREDIT_TRANSFER_STRAKS | INSTANT_NORWEGIAN_DOMESTIC_CREDIT_TRANSFER_STRAKS |
PL | SEPA_CREDIT_TRANSFER, INSTANT_POLISH_DOMESTIC_CREDIT_TRANSFER, POLISH_DOMESTIC_CREDIT_TRANSFER | INSTANT_POLISH_DOMESTIC_CREDIT_TRANSFER |
PT | SEPA_CREDIT_TRANSFER, SEPA_INSTANT_CREDIT_TRANSFER | SEPA_INSTANT_CREDIT_TRANSFER |
Supported banks
The list of banks supported in each country is available in the CSV lists below. Each list contains:
Country- Bank (display name)
BankNamevalue (e.g.at-easybank-ob)Schemevalues supported by the bank
For testing data, see Payment methods - Testing
Refunds
Pay by Bank relies on bank wire schemes which have no native refund functionality. However, you can refund pay-ins by using payouts and specifying the initial transaction ID. See Refunds using payouts for details.
Functional errors
If the Pay by Bank PayIn Status changes to FAILED, the following ResultCode errors may be returned.