Pay by bank paymentsPublic preview

Offer the option to pay directly from the bank to your UK and European customers.

Pay by bank is a single-use payment method that allows customers to pay directly from their bank account instead of a credit card. Pay by bank runs on banking infrastructure and takes advantage of open banking APIs. When a customer chooses to pay by bank, they select their bank, and are redirected to the bank’s mobile app or web portal to approve the payment.

Customer locations
United Kingdom, Germany^*
Presentment currency
GBP, EUR^*
Payment confirmation
Customer-initiated
Payment method family
Real-time payments
Recurring payments
No
Payout timing
Standard payout timing applies
Connect support
Yes
Dispute support
No
Manual capture support
No
Refunds / Partial refunds
Yes / Yes

^*Pay by bank is coming to Germany in 2025.

You can register your interest in pay by bank in Germany in the form below.

Payment flow

Customer selects Pay by Bank at checkout

Customer chooses bank and gets redirected

Customer enters account credentials

Customer completes authorization process

Customer is notified that payment is complete

Customer returns back to business’s site for payment confirmation

Get started

You don’t have to integrate Pay by Bank and other payment methods individually. If you use our front-end products, Stripe automatically determines the most relevant payment methods to display. Go to the Stripe Dashboard and enable Pay by Bank. To get started with one of our hosted UIs, follow a quickstart:

Checkout: Our pre-built, hosted checkout page.
Elements: Our drop-in UI components.

If you prefer to manually list payment methods, learn how to manually configure pay by bank as a payment.

Refunds

You can refund pay by Bank payments for up to 730 days (2 years) after the original payment. You can refund part of the original payment or the entire amount of the original payment. Refunds are free of charge but the processing fees for the original payment are non-refundable.

Stripe sends the refund back to the same bank account that initiated the payment. We’ll notify you of the final refund status using the refund.updated or refund.failed webhook event. When a refund succeeds, the status of the Refund object transitions to succeeded.

A refund can fail if the customer’s bank can’t process it correctly (for example, the bank account is closed). If a refund fails, the status of the Refund object transitions to failed. We’ll return the amount of the refund to your Stripe balance. You’ll then need to arrange an alternative way of providing your customer with a refund.

Disputes

Pay by bank payments have a low risk of fraud or unrecognised payments because the customer must authenticate the payment in their banking app. As a result, no dispute process exists that can result in a chargeback and funds being withdrawn from your Stripe account

Connect

You can use Stripe Connect with pay by bank to process payments on behalf of a connected account. Connect users can use pay by bank with the following charge types:

Enable pay by bank for connected accounts that use the Stripe Dashboard

Connected accounts that use the Stripe Dashboard can enable pay by bank in their Payment methods settings in the Dashboard. To check which accounts have enabled pay by bank, use the capabilities hash in our accounts webhooks or APIs to see if the pay_by_bank_payments capability is set to active.

Enable pay by bank for connected accounts that use the Express Dashboard or a dashboard that isn’t hosted by Stripe

To onboard connected accounts that use the Express Dashboard or a dashboard that isn’t hosted by Stripe, request the pay_by_bank_payments capability using the Capabilities API. For more details, follow the instructions to enable payment methods for your connected accounts.