Digistore24 Inc., an e-commerce platform, is introducing Instant Bank Payments, a service that enables consumers to pay directly from their bank accounts for purchases made at merchants using the platform. This new payment option is available for U.S. transactions and is powered by Stripe Inc.‘s Stripe Link service.
Shoppers can select the Instant Bank Payment option at checkout, log into their bank account, and approve the transaction. According to Stripe, this service differs from direct-debit payments made via the automated clearing house network, as it is instantly confirmed, whereas direct-debit ACH transactions may take up to four days to settle.
How Instant Bank Payments Work
Digistore24, based in St. Petersburg, Fla., explains that the bank-account payment offering is in addition to existing credit and debit card options. Nick Eubanks, chief marketing officer at Digistore24, notes that some buyers prefer bank payments, while others may have a temporarily blocked card despite having funds available.
Eubanks says, “Some buyers prefer bank payments. Others may have a temporarily blocked card despite having funds available. But in most cases, buyers will simply gravitate toward payment methods they already recognize and trust. The goal isn’t to replace existing payment methods. It’s to give buyers another path to completing checkout. Adding another trusted payment option creates more opportunities for buyers to complete purchases they already intended to make.”
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The Instant Bank Payment option is available for one-time and recurring payments. Merchants don’t need to make any updates, as the pay-by-bank payment option has been automatically added to the Digistore24 platform. Settlement happens in two days, according to Stripe.
Benefits and Security
Stripe says new users are asked to log into their bank accounts for authorization, but returning users are presented with the bank account as an option. Once the existing user has verified ownership of a Link account, they usually don’t need to log into the bank again on subsequent uses.
Stripe guarantees settlement for bank-initiated ACH returns, one of the two types of returns associated with the payment method. For customer-initiated disputes, Stripe debits the merchant’s balance for the payment amount and the dispute fee. Merchants then use the Stripe portal to respond to the type of dispute.
Stripe launched Link in 2021. The introduction of Instant Bank Payments by Digistore24 aims to provide buyers with more payment options.
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Digistore24 hasn’t released specific data on the expected impact of Instant Bank Payments.
The payment processing industry relies heavily on the automated clearing house network.
Buyers can now pay directly from their bank accounts.
Instant Bank Payments is a secure payment method. Stripe guarantees settlement for bank-initiated ACH returns, and merchants can respond to customer-initiated disputes using the Stripe portal.
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