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If you're operating an e-commerce business, your margins are likely being eroded by payment processing fees.
What if you could reduce those costs by 50%?
Pay by bank is the most affordable payment method in America. And it’s a perfect fit for the unique payment needs of online retailers.
This article explains pay by bank, its key benefits and how to add the payment solution for stickier, higher margin customers.
Pay by bank is the most innovative way for consumers to pay for online purchases using their bank account.
Shoppers simply select ‘Pay by bank’ at checkout, link an account using their online banking credentials and complete the transaction.
Funds are transferred with the Automated Clearing House (ACH) network, with online payments processing Same Day 80% of the time.
Pay by bank transactions are primarily initiated using open banking APIs. This means there is a standard, secure connection between the payment service provider and the bank to authorize financial data sharing and initiate payments.
“Pay by bank is the next generation of bank to bank payments. Basic ACH transfers mostly made sense for direct deposits, bill payments and payroll. But pay by bank fits nicely in most cases where we’re already paying by card.”
Secure data sharing makes pay by bank an intuitive solution that's able to accurately predict risk, prevent returns/chargebacks and even recognize users* across merchants.
*This functionality is unique to Aeropay.
Adding pay by bank to your e-commerce platform is very straightforward. You don’t need to replace your current payment provider or checkout flow, just choose an integration path that best fits your needs:
Once implemented, pay by bank sits alongside existing options at checkout. Shoppers select it, link their bank account once and check out in seconds.
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E-commerce companies are implementing pay by bank to reduce costs and churn while increasing conversion rates. At the end of the day, it’s an affordable payment method with comparable (or better) approvals,
Here’s the specifics:
Pay by bank uses ACH rails, instead of card payment networks. This means transaction fees are around 50% lower than credit cards.
Even compared to digital wallets, Apple Pay, buy now pay later (BNPL), PayPal, Stripe and any other popular online payment method—pay by bank processing costs are much lower.
70% of shoppers say payment options influence where they shop online. Expanding available methods is a competitive advantage that will help reduce cart abandonment and differentiate your checkout experience.
Shoppers demand trustworthy, secure payment experiences. Keep them satisfied with pay by bank features like branded bank connections.
Additional features like biometric authentication make payment systems more convenient and trustworthy, often increasing conversion rates from 65% to 90%.
Traditional ACH payments are exposed to higher risk of returns for insufficient funds, buyers’ remorse and bad payment information. Pay by bank can remove this uncertainty with Guaranteed ACH. Learn more.
Customer bank details stay valid 14+ years longer than card numbers, which expire every few years. This often means paying account updater fees and potentially losing customers that don’t update card info.
Once a customer bank is linked, enable one-click payments on all future purchases to reduce friction, improve customer experience and drive more repeat sales.
Use the real-time payment (RTP) network to send real-time payouts for instant refunds. This is a competitive advantage that improves trust and enhances customer experiences.
Many pay by bank providers that offer guaranteed payments have an average acceptance rate of only 60-70%.
Aeropay’s advanced model leverages AI and machine learning, adapting to the complexities of pay by bank, and dealing with over 50 return codes, predicting user funds at the time of the transaction, and managing dispute patterns.
Take an inside look at pay by bank approval rates.
Savvy e-commerce operators know there is a valuable tradeoff between shifting customer preferences and improving overall margins.
Many customers already want to pay by bank. Many others will switch if they’re incentivized.
Here are some targeted ways to increase pay by bank adoption with your shoppers:
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Encourage newly registered customers to link their bank account for future payments. This builds on the existing value of customer accounts; offering faster future checkouts, at a fraction of the cost.
A small nudge can go a long way. Offer a low-cost freebie (like a sticker, keychain, or sample-sized product) when customers choose to pay by bank at checkout. It’s a cost-effective way to boost usage without touching your pricing strategy.
Invite customers to switch to pay by bank with a one-time discount or bonus on their next renewal. You'll reduce churn, avoid card updater fees, and lock in lower processing costs over time.
Aeropay’s all-in-one pay by bank platform makes it easy, secure and valuable to add pay by bank for e-commerce payments.
Here’s how it works:
Aeropay is built for simple, intuitive user experiences. Once integrated e-commerce businesses use pay by bank to improve margins, retain shoppers and modernize the checkout flow.
Add Aeropay to your existing payment stack via SDK, API or directly through our Shopify integration.
