What it is
A banking framework that allows customers to securely authorize payments directly from their bank account to a merchant, bypassing the traditional card networks.
How it works
Under the Consumer Data Right (CDR), customers authenticate through their existing banking app. The funds are then pushed directly to the merchant, often resulting in instant settlement.
The Benefits
- Zero Card Fees: Bypasses the expensive interchange and scheme fees associated with cards.
- Instant Settlement: Access to funds in seconds, not days, through real-time banking rails.
- Drastic Security: No card details are ever shared, significantly lowering the risk of breaches.
Best used for
Businesses with high-value transactions or those looking to offer a low-cost, secure alternative to credit cards.